What are the consequences of liquidation on the Celsius lending platform for borrowers?

3 answers

• Gavin MisulonasFeb 02, 2024 · 2 years ago
  Liquidation on the Celsius lending platform can have serious consequences for borrowers. When a borrower's collateral value falls below the required threshold, their assets may be liquidated to cover the outstanding loan. This means that the borrower's assets are sold off to repay the loan, and any remaining funds are returned to the borrower. It's important for borrowers to monitor their collateral value and ensure it stays above the required threshold to avoid liquidation.
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• Michał GomółkaOct 04, 2020 · 5 years ago
  Liquidation is like a wake-up call for borrowers on the Celsius lending platform. If the value of their collateral drops significantly, the platform may step in and sell off their assets to recover the loan amount. This can result in a loss for the borrower, as the assets may be sold at a lower price than their original value. It's crucial for borrowers to carefully manage their collateral and keep track of market fluctuations to avoid liquidation.
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• Hao WangAug 13, 2020 · 5 years ago
  Liquidation is a risk that borrowers should be aware of when using the Celsius lending platform. If the collateral value falls below the required threshold, the platform may initiate the liquidation process. During liquidation, the borrower's assets are sold off to repay the loan, and any remaining funds are returned to the borrower. It's important to note that different platforms may have different liquidation procedures, so it's essential for borrowers to familiarize themselves with the specific rules and requirements of the Celsius lending platform.
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