> 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/mev-types/liquidation.md). # Liquidation As a type of MEV, [liquidation](https://eigenphi.io/ethereum/liquidation) is a process that occurs when a borrower's collateral value does not properly cover their loan/debt value. In the event of a negative price fluctuation of the debt collateral (i.e., a move below the liquidation threshold), a position can be liquidated. In permissionless blockchains, anyone can repay the debt and claim the collateral. For all the terms of liquidation, please refer to the glossary: * [Asset](/classroom/glossary/asset-liquidation.md) * [Borrower](/classroom/glossary/borrower-liquidation.md) * [Liquidator](/classroom/glossary/liquidator-liquidation.md) * [Collateral](/classroom/glossary/collateral-liquidation.md) * [LTV](/classroom/glossary/ltv-liquidation.md) * [Liquidation Threshold](/classroom/glossary/liquidation-threshold-liquidation.md) *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, .*