How do liquidations work?
If a borrower misses their repayment, they have a five day grace period to make the payment before their collateral can be liquidated by the Pool Delegate and repaid to the Lending Pools that funded the loan.
Liquidation Timeline
In case of a collateral shortfall after the liquidation, the amount can be claimed from the Staking Pool on Balancer, which contains MPL and USDC deposited by Maple Token Holders. Staked Balancer Pool Tokens will be redeemed on Balancer for stablecoin and distributed to the Lending Pool.
All Borrowers enter a Master Loan Agreement during onboarding which enables legal enforcement.
Last modified 4mo ago
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