> For the complete documentation index, see [llms.txt](https://tutorials.ts.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tutorials.ts.finance/how-to-use-term-structure/onboarding-guide/liquidation.md). # 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.