Liquidations

Teller pool loans are fixed duration(each pool can have different duration so check the pool metrics for "Duration per loan") and if a loan isn't repaid or extended before the time duration expires, the loan will default. In this case any liquidator can claim the full collateral while the loan amount will return to the liquidity pool.

Auctions details:

• Pair - liquidity pool pair the loan originated from.

• Collateral - fixed collateral amount used for the loan that can be claimed by liquidators.

• Price - price paid by liquidators to claim the collateral amount, this will decrease over time.

• Time - time left on the 24 hours auction timer.

Auctions page

Once a pool loan defaults it will get auctioned and can be liquidated from the Auctions page. As the pool loans are overcollateralized for the first 24 hours the price to liquidate the collateral starts higher than the initial loan amount and then decreases linearly with time. After the principal loan has been repaid to the liquidity pool, any surplus from a successful auction will be shared between the protocol and the liquidity pool, thus increasing the pool yield for lenders.

To liquidate a defaulted loan click on - Liquidate and confirm in the connected wallet.