IFICHI
  • What is IFICHI?
    • Introduction
      • Synthetic Tokens
      • Interest Rate Mechanics
    • Approach & Framework
      • Final Remarks
    • Lending System
      • Code Base and Verification
      • Licensing
      • Protocol Mathematics
      • Governance System
    • Strategy for Progressive Decentralization
    • Security Precautions
      • Security Focus
      • Security Measures and Philosophy
    • Liquidation Mechanics
    • Bug Bounty
      • Ethical Research Guidelines
      • Commitment to Researchers
      • Discretion and Rights
      • Our Commitment to Researchers
    • Borrowing & Lending Process
    • Liquidity Provision Guide
      • Benefits
      • Custom Liquidity Model
      • Comparison with Uniswap
      • Liquidity Provider Shares
      • Trading hTokens
      • Market Impact
    • Tokenomics
      • Core Concepts
      • Allocation
Powered by GitBook
On this page
  1. What is IFICHI?

Liquidation Mechanics

Liquidation Process in IFICHI

The process of liquidating at-risk vaults is a critical operational element in the IFICHI protocol. When a borrower's collateral value dips below the required collateralization threshold, the protocol permits any account to initiate a liquidation.

Mechanism of Liquidation

  • Structure: IFICHI's liquidation mechanism is structured similarly to Compound's system, where no auction is involved.

  • Incentives: For each type of collateral, there's a specified liquidationIncentive. This incentive plays a crucial role in calculating the rewards for liquidators. For example, with a 10% incentive on collateral valued at $5,000, a liquidator would receive $500 in collateral.

  • Who Can Liquidate: Anyone familiar with the smart contract API can act as a liquidator. To facilitate this, we've developed a liquidation bot that can be deployed on cloud platforms like Google Cloud.

Liquidator Bot

  • GitHub Repository: Users interested in automating the liquidation process can refer to our liquidation bot available on GitHub.

Pricing Data

  • Chainlink Dependency: IFICHI relies on Chainlink Price Feeds for accurate and timely price data, leveraging Chainlink's status as a leading oracle network for contracts.

PreviousSecurity Measures and PhilosophyNextBug Bounty

Last updated 5 months ago