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. Introduction
  2. Pros for borrowers

Get value from the auctions (ordinals)

PreviousLiquidation-protection (ordinals)NextPros for lenders

Last updated 6 months ago

If your ordinals are liquidated, the process involves a fully on-chain auction lasting for blocks. The highest bid wins, and you will receive the funds after repaying the loan. This mechanism is particularly important for grail ordinals, as they won’t be liquidated at the floor price, unlike in peer-to-peer lending services.

Example

  1. Alice purchased a grail ordinal for 0.3 BTC when the floor price was 0.2 BTC.

  2. She borrowed 0.1 BTC from Bitty, using a 50% loan-to-value (LTV) based on the floor price.

  3. Unfortunately, Alice was unable to repay the loan and was liquidated.

  4. After the auction concluded, the winning bid for her grail ordinal was 0.27 BTC. After repaying her loan, Alice received 0.27 BTC - 0.1 BTC = 0.17 BTC back.

This is a scenario she would not have experienced had she used a peer-to-peer service.

144 + 3