> For the complete documentation index, see [llms.txt](https://eigenphi-1.gitbook.io/classroom/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eigenphi-1.gitbook.io/classroom/glossary/borrower-liquidation.md).

# Borrower, Liquidation

A borrower provides collateral to borrow assets from a lender. The borrower is liable to pay regular interest fees to the lender (typically measured as a percentage of the loan).

*Source: Kaihua Qin et al., “An Empirical Study of DeFi Liquidations: Incentives, Risks, and Instabilities,” Proceedings of the 21st ACM Internet Measurement Conference (November 2, 2021): 3, accessed May 2, 2022, <http://arxiv.org/abs/2106.06389>.*