Trading
Margin Calls
Automatic CDP liquidation via DEX sell orders at MCOP, with no special engine
Margin Calls
A margin call triggers automatically when a CDP's collateral ratio falls below MCR. The protocol places the borrower's collateral as a sell order on the DEX at the Margin Call Order Price (MCOP), filling against regular limit orders — no special liquidation engine.
MCOP = settlement_price / (MSSR - MCFR) MSSP = settlement_price / MSSR Where MCFR is the Margin Call Fee Ratio (if applicable)
Any trader with a matching limit order benefits by receiving the collateral at a discounted price. If target_collateral_ratio is set, only enough collateral is sold to restore the position to the TCR value.