A partial liquidation or close does not necessarily mean the entire borrowing position must disappear.
In lending systems that support a close factor, a permitted liquidation can be limited to a portion of the outstanding debt. The liquidator repays the eligible amount and receives the corresponding collateral under the protocol's rules. The remaining debt may continue to exist if the position is still open and the remaining collateral supports it.
That can avoid unnecessary disruption. A borrower who has reduced their exposure may retain the rest of the position rather than having every outstanding unit of debt closed at once.
The remaining balance does not become risk-free, however. Interest can continue to accrue on outstanding debt, and changes in collateral prices or market parameters may affect the position's health. Additional liquidation may still be possible if the account remains below the relevant requirements.
Users and integrators should also distinguish between a partial liquidation and an ordinary repayment. The precise effects depend on the contract's close-factor rules, eligibility checks, and the transaction being executed.
For developers, this makes it important to model partial outcomes instead of assuming every liquidation clears the account completely. Dashboards should show the remaining debt, updated collateral, and current risk status after execution.
A smaller position can still be a live position.
Understanding that continuity helps users manage risk and helps automated systems respond to what actually remains on-chain.
@DeFi_JUST @Justin Sun孙宇晨 #TRONEcoStar
In lending systems that support a close factor, a permitted liquidation can be limited to a portion of the outstanding debt. The liquidator repays the eligible amount and receives the corresponding collateral under the protocol's rules. The remaining debt may continue to exist if the position is still open and the remaining collateral supports it.
That can avoid unnecessary disruption. A borrower who has reduced their exposure may retain the rest of the position rather than having every outstanding unit of debt closed at once.
The remaining balance does not become risk-free, however. Interest can continue to accrue on outstanding debt, and changes in collateral prices or market parameters may affect the position's health. Additional liquidation may still be possible if the account remains below the relevant requirements.
Users and integrators should also distinguish between a partial liquidation and an ordinary repayment. The precise effects depend on the contract's close-factor rules, eligibility checks, and the transaction being executed.
For developers, this makes it important to model partial outcomes instead of assuming every liquidation clears the account completely. Dashboards should show the remaining debt, updated collateral, and current risk status after execution.
A smaller position can still be a live position.
Understanding that continuity helps users manage risk and helps automated systems respond to what actually remains on-chain.
@DeFi_JUST @Justin Sun孙宇晨 #TRONEcoStar