🛑Liquidations

Loans are automatically liquidated by Darsh's smart contract, on a borrower on defaulting on his borrowed loan, Although liquidations are Time-based not price-based, which is determined by the Loan duration specified by the owner of a lend loan offer.

Note: Once the Loan duration specified by a loan offer owner has been reached, the borrower is given a grace period of 5 days to pay back a loan, else the loan is defaulted.

A briefed Flow diagram showing how loans are settled when a Borrower defaults:

Assuming the Borrower made no pay back.