# Liquidation The Liquidation Mechanism is used to protect the rights and interests of the lenders and the stability of the protocol. It is fully on-chain, decentralized, and public with incentives. Liquidation is categorized as Full Liquidation and Half Liquidation based on the value of the collateral. ## Liquidation Threshold The Liquidation Threshold is the maximum acceptable LTV ratio for a loan during its lifetime. The Liquidation Threshold is 0.8 for a non-stablecoin pair's loan, a loan with any non-stablecoin being a collateral or borrowing token while the ratio is 0.925 for the stablecoin pair's loan, a loan with both collateral and borrowing tokens being stablecoins. Please refer to for more details. --- # 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://tutorials.ts.finance/how-to-use-term-structure/onboarding-guide/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.