Leveraged positions (more than 1x) are subject to liquidation when Debt Ratio = 100%. When positions are at 100% debt ratio, liquidators can liquidate these positions by repaying the debt (any amount) and earn 105% of the amount liquidators liquidate. (meaning 5% bonus).
Liquidators can follow the steps below.
Click liquidate on the position that is subject to liquidation risk on All Positions page.
2. Select which token the liquidator wants to repay and enter how much.
Note 1: Liquidators don't have to repay the full debt amount and can choose what amount they want to liquidate.
3. Liquidators will receive 105% of the amount liquidators liquidate in a form of LP token. (meaning 5% bonus). For instance, if liquidators liquidate 10 ETH by repaying 10 ETH. Liquidators will get LP token back in a value equivalent to 10.5 ETH.