Max Premium Rate,
Partial Liquidation Threshold, and
Valid Price Timeframeconstitute the control mechanism of liquidating collaterals.
Safe Ratiois the target risk ratio of a liquidated loan position, defined as the ratio of (Borrow Amount) to (Borrow Limit). A low
Safe Ratiovalue allows for the fast liquidation of collaterals while incurring a high price impact for the collateral, while a low
Safe Ratiovalue enforces liquidations with lower collateral price impact, albeit with slower collateral liquidation.
Bid Feeparameter determines the commission rate on executed bids, which is used to purchase ANC tokens.
Max Premium Rateis the maximum rate of premium that bidders can submit.
Partial Liquidation Thresholdis defined as the threshold total collateral value to trigger partial collateral liquidations. Loan positions with a total collateral value below this threshold have their collaterals fully liquidated at once, resetting their risk ratio to 0.
Valid Price Timeframedetermines the freshness limit for oracle price data. Oracle price data is considered invalid (halts all collateral liquidations) when the most recent price data is older than
Valid Price Timeframe.