> 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/liquidation-threshold-liquidation.md).

# Liquidation Threshold, Liquidation

The liquidation threshold is the percentage at which the collateral value is counted towards the borrowing capacity. For example, a Liquidation threshold of 80% means that if the value rises above 80% of the collateral, the loan is undercollateralised and could be liquidated. The delta between the Loan-To-Value and the Liquidation Threshold is a safety cushion for borrowers.