What to Do During Liquidation

If your loan enters liquidation protection, you have more time and flexibility to act. You have two main options:

• Close your loan: Stop further losses by closing the position
• Keep your loan open: Monitor your health closely to avoid reaching 0%

Close Your Loan

You can close your loan in two ways:

• Repay your full debt: See how to do that here.
• Self-liquidate: Only available when in liquidation range. Closes your position without liquidation penalty.

How to Get Out of Liquidation Protection

Important: You cannot exit liquidation protection by repaying debt, because the liquidation range does not move when actions happen in liquidation (see the loan management table).

You can only get out of liquidation protection by:

1. Repay the full loan and create a new one
2. Wait for price recovery: If the collateral price moves above or below the liquidation range, you'll exit liquidation protection

Watch your health closely - if it reaches 0%, your loan will be fully liquidated.

Keep Your Loan Open

If you choose to keep your position open, monitor your loan health closely to avoid reaching 0%.

Use the Llamalend Telegram bot to track your loan health and receive alerts.