# 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](https://position.exchange/trade/). * The system will distribute the issuer’s collateral to the holder as a percentage of holding. --- # 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://docs.position.exchange/products/position-p2p-bond/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.