How to Liquidate

What is a liquidation?

A liquidation is an event where the collateral used to take a loan (CDP) is released to satisfy the outstanding debt issued against it and the position is then closed.

How to Liquidate a CDP?

  1. To liquidate a CDP, click the Liquidate button to the right of the CDP parameters. It is important to ensure that you have enough of the outstanding synthetic asset to be able to liquidate the position.

If you don't have enough of the synthetic necessary to perform the liquidation, you can create a CDP for that synthetic in that same transaction to facilitate the liquidation. This is known as a "takeover" strategy.

  1. Review the transaction. When ready, click the Complete Transaction button and sign.

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