How can I avoid getting liquidated ?
as of 06/02/2022
To avoid getting liquidated, the value of your collateral has to be worth sufficiently more than your loan.
Here is some advice that can help you avoid getting liquidated:
- Check on your position frequently to ensure it remains in good health.
- Use a stablecoin in either the deposited or borrowed asset to reduce the number of variables you have to monitor.
- Preparing a repayment plan before taking a loan to be prepared for any scenario.
If you are still at risk of liquidation after taking all the safety measures there are two things you can do:
- You can pay back your loan or a fragment of the amount you have borrowed.
- You can deposit more collateral, thus decreasing your loan to value ratio.