> 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, .* --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://eigenphi-1.gitbook.io/classroom/mev-types/liquidation.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.