# Liquidation Liquidation occurs when a user's total borrow has reached a threshold, i.e. the risk factor is greater than or equal to 100%. $$ RiskFactor = \frac{ \Sigma\_{borrow} MarketValue\_{borrow}}{ \Sigma\_{collateral} LiquidationThreshold\_{collateral} \* MarketValue\_{collateral}} $$ Risk factor represents the overall liquidation risk for a given users. When the users add more collateral into the protocol, the risk reduces. Conversely when the users borrow more, the risk increases. When a user has reached its liquidation threshold, up to 50% (in terms of market value) of the total borrowed asset is sold to the liquidator at a discounted price to repay a portion of the loan. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.port.finance/port-finance-variable-rate-lending/liquidation.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.