The fairness payment mechanism during liquidation within Trustless Bitcoin Vaults (TBV) was reviewed today specifically the two distinct settlement outcomes it produces depending on liquidation type.

Per the documentation: in a partial liquidation the common case any surplus is returned to the depositor as additional debt repayment. In a full liquidation, once outstanding debt is already covered the remaining settlement pays out in WBTC instead.

The gap worth naming precisely treating these two paths as interchangeable, or assuming WBTC-payout as the default outcome, misreads how the mechanism actually resolves in most real scenarios partial liquidations are the more frequently-encountered case, with WBTC as the exception rather than the norm.

Worth understanding which specific path applies before assuming either outcome as standard.

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