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Collateral Liquidation

Introduction

Infinity has a robust collateral management framework enabling you to post a wide variety of assets as collateral. The collateral management and liquidation process centres around a metric called the Health Score. Generally speaking, the higher your Health Score, the lower the chance of liquidation; the lower your Health Score, the higher the chance of liquidation.

Collateral Assets

The following types of assets may be used as collateral with Infinity:
  • Basic tokens: USDT, USDC, DAI, ETH, WBTC
  • Deposit tokens: e.g. aETH (Aave), aETH (Compound)
  • Complex tokens: e.g. Curve LP Tokens, Uniswap V3 LP Tokens

Liquidation Preference Order

When your Health Score drops in value, Infinity may need to liquidate some of the above assets starting with the largest assets and moving down sequentially to the smallest assets.

Who Performs the Liquidations?

The Liquidations are performed automatically by our internal risk management system. Each time a liquidation is performed, there is a 5% penalty applied to those assets.
We do not currently have a method to open up the liquidation process to external parties, but are considering that at some point in the future.
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Introduction
Collateral Assets
Liquidation Preference Order
Who Performs the Liquidations?