> For the complete documentation index, see [llms.txt](https://docs.pulselend.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pulselend.com/protocol-info/liquidations.md). # Liquidations ## Liquidation Incentives Extra collateral is provided to liquidators as a motivation to carry out liquidations and maintain the protocol's solvency. A part of this collateral is allocated to the sToken reserves in accordance with the protocol's seize share, mitigating the possibility of insolvency due to a chain reaction of liquidations. The Liquidation Incentive amounts to 10% of an under-collateralized account's outstanding debt, with 30% of that sum being returned to the protocol reserves. The liquidation incentives will steadily increase over time to entice engagement, beginning at 10% plus a premium to allow the discount to rise as a function of how under-water a position is. The market forces will dictate how high it needs to be. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.pulselend.com/protocol-info/liquidations.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.