> For the complete documentation index, see [llms.txt](https://docs-rade.rariti.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-rade.rariti.io/getting-started/liquidation.md).

# Liquidation

Help maintain the health of the protocol by taking the role of liquidator and earn rewards.

Users can take the role of *Liquidators in the RADE ecosystem,* by assisting the protocol mitigate risky loan accounts by partially or fully liquidating the collateral to cover the borrower’s loan defaults. 

Market forces can also effect the price of collateralized ETH and decrease the *Collateralization Ratio* (CR) of the loans (Nests). Such Nests will be listed in the protocols Liquidation table and will be subject to liquidation. Liquidators can initiate the liquidation by providing gas for the liquidation transaction and get liquidation rewards.

**Here are the steps to follow in Liquidation.** 

**Step 1 :** Navigate to Liquidate section in the dashboard.

Here you can see two tables (as illustrated below). *My Nests* table depicts all your Nests which are subject to liquidation either by payment defaults or by change in Collateralization ratio (below 150%).

{% hint style="danger" %}
You can either repay your loan to remove your nest from the liquidation tables either by partial repayment, or if you are short of funds, you can partially liquidate your pledged collateral.
{% endhint %}

<figure><img src="https://1264976424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6Cf6DwJRtpLlXN4LJOqL%2Fuploads%2Ff5WdyKXyW7l5fygvG0JL%2FL1.jpg?alt=media&amp;token=0f0b8056-3f45-4df9-9805-66cb06036ff1" alt=""><figcaption></figcaption></figure>

**Step 2 :** To Liquidate a Nest, click on the *Liquidate* button from the *Protocol Nests* table and click confirm to proceed.

{% hint style="warning" %}
By clicking on *confirm,* you agree to spend for gas for the liquidation to go through.
{% endhint %}

<figure><img src="https://1264976424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6Cf6DwJRtpLlXN4LJOqL%2Fuploads%2FRnX4bmP0p6ZCPjsaKc63%2FL2.jpg?alt=media&amp;token=04b0d77e-6ff5-4c54-9194-76cb58f83c1c" alt=""><figcaption></figcaption></figure>

**Step 3 :** Confirm the transaction in your Metamask wallet to initiate Liquidation.

<figure><img src="https://1264976424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6Cf6DwJRtpLlXN4LJOqL%2Fuploads%2FisRcI1dDrSMpRYH3yPuR%2FL3.jpg?alt=media&amp;token=02f35854-de20-43ca-adec-a961287ae19d" alt=""><figcaption></figcaption></figure>

**Step 4 :** Wait for the transaction success message as shown below.

<figure><img src="https://1264976424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6Cf6DwJRtpLlXN4LJOqL%2Fuploads%2Fhod0FHUgoa3gv4m8whAm%2FL4.jpg?alt=media&amp;token=583fbb69-c342-4ec1-b8cb-debc4bd578c4" alt=""><figcaption></figcaption></figure>

**Step 5 :** The respective Nest will be removed the Liquidation table and respective accounts of the Borrower and the Liquidator will be updated accordingly.

{% hint style="success" %}
90% of the liquidated collateral will be returned back to the Borrower.

5% of the collateral will be rewarded to the Liquidator as reward.

Remaining 5% will be paid to the platform as liquidation fees.
{% endhint %}

<figure><img src="https://1264976424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6Cf6DwJRtpLlXN4LJOqL%2Fuploads%2FMne5Ie0jEs8FBXEEMAlz%2FL5.jpg?alt=media&amp;token=9275285b-4914-440d-b946-3ccbdd9428e7" alt=""><figcaption></figcaption></figure>