⭐Liquidation

Connexar applies two conditions to liquidate the borrower’s NFT collateral. 3.1. The collateral will be liquidated if the borrower is unable to repay the loan at the end of the lending period as indicated in the lending term and agreement. This liquidation process is the default. 3.2. If the trading value of collateral decreases below the value that has been borrowed plus 10% (value is calculated according to the borrowed token), the collateral will be liquidated. This condition is optional. 3.3. One more optional liquidation condition is similar to condition 3.2. But the value is calculated according to the USD value. It means that the collateral will be liquidated once the value of NFT in USD goes below the borrowed value plus 10%.

The value of the collateral will be calculated with multiple logic. For example, the last price, floor price, and other indicators could affect the value of NFT.

Once the collateral is liquidated, the lender will be able to claim it immediately.