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Liquidations of risky assets & Collateral Cashback

The liquidations of risky assets happen when the liquidation threshold of those asset has been reached.
Then, the asset(s) are liquidated following FRAKT's process, which is detailed here:
A unique feature of the midas protocol is that after having recovered the debt taken on the collateral, applied the penalty fee (10%) and FRAKT handling fee (2.5%), the remainder of the value, in SOL, is returned to the user whose asset(s) were liquidated, which we call the Collateral Cashback.
This method of liquidation guarantees the robustness of the MDS protocol as well as fairness towards the user of the MDS platform, substantially decreasing the risk using midas.
The timing of this process can vary as it currently is partially manual. We're aiming for <24 hours.
A concrete example:
User A has an asset worth 100 SOL.
User A decides to maximize the LTV taken on the 100 SOL, thus receives the equivalent of 35 SOL in $MDS.
The price of the asset drops to 70 SOL (a drop of 30%), thus reaching its liquidation ratio of 200% (see Multi-collateral MDS & Supported collections for detail).
The asset then goes through our liquidation mechanism:
  • Step 1: FRAKT raffles the asset at 10% below the floor price (margin): 63 SOL
  • Step 2: 35 SOL is recovered to cover the debt with the MDS protocol (converted in MDS)
  • Step 3: 28 SOL remains and is split as follows:
    • 28 SOL * 10% (Penalty fee) = 2.8 SOL (converted to $HADES, sent to veinHades Insurance Pool)
    • 28 SOL * 2.5% (FRAKT handling fee) = 0.7 SOL (sent to FRAKT)
  • Step 4: After all those subtractions, the user is left with the Collateral Cashback, the 24.5 SOL. This is sent back to the user who was just liquidated on this asset.