Darsh Protocol
  • Introduction
    • 📒Introduction
    • 💻How it works.
    • 🎯Flow Diagrams
  • Product Guide
    • 💸Lending
      • ✍️Create Lend offer
      • 📥Manage requests
      • 🧰Offer Management
      • 💰Claim Repayments
      • 💧Emissions
    • ⌛Borrowing
      • ⏳Borrow Loan
      • 🧰Offer Management
      • 📤Loan Requests
      • 🎯Loan Payback
    • 🛑Liquidations
  • Additional Guides
    • 🪧Fee structures
    • 🪧Offer Guides
    • 🪧Supported Tokens
  • Smart Contracts
    • 📄LendingPool Contract
  • Others
    • ❔Frequently Asked Questions
    • 🛣️Roadmap
  • Resources
    • Website
    • Twitter
    • Medium
    • Telegram
    • Discord
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  1. Product Guide

Liquidations

PreviousLoan PaybackNextFee structures

Last updated 2 years ago

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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:

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Assuming the Borrower made no pay back.