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Liquidations

forced liquidations that keep the system healthy
In order to keep USDA sufficiently backed by assets, a mechanism is put into place to liquidate unhealthy Vaults. Once the Liquidation Ratio of a Vault drops below the treshold, the Vault is tagged for liquidation and the assets can be bought at a discount.
Since launch, we've democratised liquidations by releasing a way to participate in them without running complex off-chain infrastructure:
Liquidations happen through the Liquidation Pool.​
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