Liquidation

Glossary

Kill Factor: Maximum debt ratio, beyond which anyone can liquidate the position.

Debt Ratio: Debt value as a percentage of the total position value.

Formula: Debt Ratio = loan value / position value (in loan token) *100%

Risk Ratio: Ratio of debt ratio to kill factor.

Formula: Risk Ratio = debt ratio / liquidation coefficient * 100%

Liquidation Rules

In the event that your debt ratio has gone above the Kill Factor, that is to say, when the risk ratio of the position reaches 100%, your position will be liquidated.

  1. The liquidation mechanism adopts DEX+CEX double price verification, liquidation will executed only when the error is within 5%.

  2. Two price verifications (with an interval of 1 minute), to prevent attackers from profiting by price manipulation in the same block through flash loan.

  3. The Rabbit Finance participates in position liquidation, and liquidation is not executed by bounty hunter, to prevent attackers from obtaining liquidation benefits through flash loan.

The value you receive back after liquidation will depend on the Kill Factor. Please refer to the table below for an estimate.

Calculation formula:

Value return to Farmer = (Position value - Debt value (include interest) - Liquidation fee)

DEX

Pairs

Leverage

Debt Ratio

Kill Factor

MDEX

USDT/BNB

3

66.67%

83.33%

PancakeSwap

USDT/BNB

3

66.67%

83.33%

MDEX

USDT/BUSD

9

88.89%

94%

PancakeSwap

USDT/BUSD

9

88.89%

94%

MDEX

BUSD/BNB

3

66.67%

83.33%

PancakeSwap

BUSD/BNB

3

66.67%

83.33%

PancakeSwap

BTCB/BUSD

3

66.67%

83.33%

MDEX

ETH/BNB

3

66.67%

83.33%

PancakeSwap

ETH/BNB

3

66.67%

83.33%

MDEX

BTCB/BNB

3

66.67%

83.33%

PancakeSwap

BTCB/BNB

3

66.67%

83.33%

MDEX

MDX/BNB

3

66.67%

83.33%

PancakeSwap

CAKE/BNB

3

66.67%

83.33%

MDEX

BTCB/USDT

3

66.67%

83.33%

MDEX

ETH/USDT

3

66.67%

83.33%

MDEX

DOT/USDT

2

50%

67.50%

MDEX

FIL/USDT

3

66.67%

83.33%

MDEX

ADA/USDT

2

50%

67.50%

MDEX

LTC/USDT

3

66.67%

83.33%

MDEX

CAKE/BNB

3

66.67%

83.33%

MDEX

MDX/BUSD

3

66.67%

83.33%

PancakeSwap

LINK/BNB

3

66.67%

83.33%

PancakeSwap

XVS/BNB

3

66.67%

83.33%

PancakeSwap

DOT/BNB

3

66.67%

83.33%

PancakeSwap

ADA/BNB

3

66.67%

83.33%

PancakeSwap

UNI/BNB

3

66.67%

83.33%

PancakeSwap

CAKE/BUSD

3

66.67%

83.33%

PancakeSwap

DAI/BUSD

4

75%

90%

PancakeSwap

USDC/BUSD

9

88.89%

94%

PancakeSwap

USDC/USDT

9

88.89%

94%