> 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).