# Loan Liquidation

**URL:** <https://forum.anchorprotocol.com/t/loan-liquidation/99>\
**Category:** Mechanism\
**Created:** [March 19, 2021, 3:43am UTC](https://forum.anchorprotocol.com/t/loan-liquidation/99 "2021-03-19T03:43:32Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![amull](https://avatars.discourse-cdn.com/v4/letter/a/ecae2f/32.png) [@amull](https://forum.anchorprotocol.com/u/amull)\
**Post date:** [March 19, 2021, 3:43am UTC](https://forum.anchorprotocol.com/t/loan-liquidation/99/1 "2021-03-19T03:43:32Z")

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At what point and how does your loan get liquidated? For example, if I were to be able to borrow 100$ from ANC and set the TVL% at the assumed safe rate (35%). How would my collateral be liquidated if it crosses past the 35%? Would Anchor liquidate my entire collateral or would they take a portion of my collateral and sell it to put my loan back in the agreed percentage positioning?

Thank you,  
Aidan  
NRL member

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**Author:** ![bguy0](https://avatars.discourse-cdn.com/v4/letter/b/65b543/32.png) [@bguy0](https://forum.anchorprotocol.com/u/bguy0)\
**Post date:** [March 19, 2021, 4:23am UTC](https://forum.anchorprotocol.com/t/loan-liquidation/99/2 "2021-03-19T04:23:28Z")

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Your loan does not get liquidated until your LTV crosses 50%. The reason 35% is “safe” is that it gives you some wiggle room in case the price of your collateral drops (in which case your LTV will go up). If your collateral is \<500UST, all of it will be liquidated when your loan goes past 50% LTV. If your collateral is \>500UST, it will only be partially liquidated so that your loan goes back to 0.8 of your maximum borrowable amount (which is 40% LTV).

That’s what I got from reading the docs, please correct me if I am wrong.

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**Author:** ![Sebnondzee](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/sebnondzee/32/201_2.png) [@Sebnondzee](https://forum.anchorprotocol.com/u/Sebnondzee)\
**Post date:** [March 19, 2021, 5:49am UTC](https://forum.anchorprotocol.com/t/loan-liquidation/99/3 "2021-03-19T05:49:27Z")

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> [@bguy0](#):
>
> rice of your collateral drops (in which case your LTV will go up). If your collateral is \<500UST, all of it will be liquidated when your loan goes past 50% LTV. If your collateral is \>500UST, it will only be partially liquidated so that your loan goes back to 0.8 of your maximum borrowable amount (which is 40% LTV).

absolutely correct - it’s also worth noting that the borrow limit as shown in the UI is reflecting how far you are form the 50% LTV limit (i.e. you’re at 70% borrow limit would mean you’re at 35% LTV)