Bitty Doc
  • Introduction
    • Why Bitty?
    • Pros for borrowers
      • Borrow money instantly
      • Repay money anytime
      • Interests lower
      • Batch borrows in one transaction
      • Claim airdrops in loans (Ordinals)
      • Proof of Ownership (ordinals)
      • Liquidation-protection (ordinals)
      • Get value from the auctions (ordinals)
    • Pros for lenders
      • Get interests instantly
      • Withdraw money anytime
      • Get protected from defaulting
  • User guides
    • Borrowers
      • Borrow money
      • Repay loan & interests
      • Claim airdrops
      • Proof collateral ownership
      • Redeem when auction started
    • Lenders
      • Deposit money
      • Withdraw money & interests
    • Liquidators
      • Trigger liquidation
      • Offer higher auction bid
      • Get the collateral as auction winer
  • Risk
    • Platform
    • Oracle manipulation
    • Borrower
      • Collaterals liquidation
    • Lender
      • Bank run
    • Liquidator
      • Lost money after the ordinals auction finished
  • FAQ
    • How to implements pool lending without smart contract?
    • Are my assets safe?
    • How liquidation works?
    • What is 72 + 3 blocks ordinals auction?
    • What is potential first bid bonus?
    • What is Health Factor?
    • Interest rate
  • Community Discord
Powered by GitBook
On this page
  1. FAQ

How liquidation works?

PreviousAre my assets safe?NextWhat is 72 + 3 blocks ordinals auction?

Last updated 1 month ago

Both of ordinals and BTC/Run can be used as collateral for borrowing funds.

Liquidation Rules for Ordinals:

  • Different ordinals as collateral cannot share margins; each loan has its own unique loan ID.

  • If the health factor of any ordinal collateral falls below 1, a block auction may be initiated.

  • Anyone can participate in the on-chain auction, and the platform does not receive any funds from these auctions.

  • Each higher bid should be 1% more than last bid.

  • The money (highest_bid - debt) will go to the pool added to balance for original owner (Bitcoin has no smart contract to make it go back to owner directly because we can not know when the transaction will be confirmed).

Liquidation Rules for BTC/Runes:

  • Similar to , different assets as collateral cannot share margins; each loan has its own unique loan ID. Users can maintain multiple loan positions using the same type of asset.

  • If the health factor of any collateral drops below 1, an on-chain auction may be triggered by anyone.

  • There is no 144-block liquidation protection for BTC/Runes

144 + 3
Aave