Position Exchange
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Liquidation

Liquidation rules

  • The bond will be liquidated when its LTV reaches 80%.
LTV = (Total sold unit * Issue Price*100) / Collateral * Collateral TWAP price
For example: You sell 1000 bond units at the issue price = 0.65 BUSD and mortgage 10000 POSI at the rate POSI/BUSD=0.1 LTV = (1000*0.65*100)/(10000*0.1)=65%
  • The bond will be liquidated if the issuers do not repay before the maturity date.

The effects of liquidation

  • When a bond is liquidated or matured, users can no longer trade it on Bond Exchange.
  • The system will distribute the issuer’s collateral to the holder as a percentage of holding.