Liquidation Penalty

Introduction
The Liquidation Penalty defines the number of points taken away from the DeFi Credit Score if the Borrower is liquidated on their position. This penalty is currently set to the following values:
Vault A: −250-250−250
 points per liquidation per day.
Vault B: −300-300−300
​ points per liquidation per day.
Vault C: −350-350−350
 points per liquidation per day.
Score Impact
The Liquidation Penalty subtracts points for every day and every vault in which a liquidation occurs. The penalty only applies for 120 days, similar to the Daily Score Reward. After this period, the penalty is removed from the Borrower’s score.

Survival Score Reward

Data Sources

Last modified 6mo ago