↪️How to Manually Liquidate Bad Debt
Identifying Undercollateralized Loan Positions
The first step in manual liquidation is to identify undercollateralized loan positions. These are loan positions where the collateral ratio has fallen below the minimum required level of 110%.
You can monitor the health of the protocol and the status of loans within the system through the DCNTRL Protocol Risky Mints section, which provides real-time data on the status of all active loans.
How To Initiate a User Liquidation
Once you have identified an undercollateralized loan position, you can initiate the liquidation process. This involves interacting with the DCNTRL Protocol smart contracts to liquidate the insufficient collateral and recover the value of the loan.
To initiate the liquidation process follow these steps:
Select the loan that is at risk & Click on the "Liquidate" icon associated with the loan.
Enter the amount of the debt you wish to Liquidate & click confirm.
Confirm the transaction in your wallet. Once the transaction is confirmed, the bad debt will be liquidated and the rewards will be returned to your wallet.
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