> For the complete documentation index, see [llms.txt](https://docs.loanshark.tech/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.loanshark.tech/loanshark-core/borrow/liquidation.md). # Liquidation The liquidation process is triggered when a borrower's borrow utilization increases to 100% or higher, indicating that the value of their collateral may not be enough to cover their debt, posing risks to lenders and the protocol. The liquidation process incentivises external party(ies) to actively monitor Loanshark's loan portfolios to seek out borrowings that have borrow utilization above 1 and to actively repay these loans to ensure liquidity safety and health of the protocol. Liquidation bonuses paid to the liquidator vary by asset and can be found under [Asset Parameters](/loanshark-core/technical/asset-parameters.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.loanshark.tech/loanshark-core/borrow/liquidation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.