# Liquidations

Your current "Borrow Balance" and "Supply Balance" are calculated using our 2 oracles, Pyth (main) and Switchboard (backup). Using these oracles, we can calculate your current health factor.&#x20;

When your Health Bar reaches the orange line, your account is open to being liquidated. This orange line, the Liquidation Threshold, is based on the [parameters ](/protocol/parameters.md)set on different tokens. We calculate this liquidation threshold based on the weighted average of all the assets you deposited. &#x20;

![This can be found in your Account Details screen](/files/rr3LC5c7ZQ13AimnUMq1)

When your account is open to being liquidated, our Third Party Liquidators will repay **20%** of your loans by selling the equivalent amount in Collateral. The liquidators will also collect an additional **5%** on the amount (20%) they liquidated, as a bounty to secure our protocol. You can learn more about becoming a liquidator [here](/developers/liquidators.md).

### Liquidation Example

Let's say Bob supplied $10,000 USDC and borrowed $7,500 of BTC. BTC then goes up by 6.69% putting the BTC value at \~$8,000, making Bobs account eligible for liquidation.&#x20;

The liquidator repays 20% of the BTC loan, $1,600, collects $1,600 from the collateral USDC supply to cover the BTC, then collects an additional 5% ($80) as a bonus for completing the liquidation successfully.&#x20;

Now Bob has $10,000 - $1,600 - $80 = $8,320 in USDC, and $8,000 - $1,600 = $6,400 in BTC borrows while the liquidator paid $1600 in BTC and received 1,680 in USDC, for a profit of $80.&#x20;

Bob's Liquidation Threshold drops from 80% -> 77%.&#x20;


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