Liquidation Process (Low Collateral Ratio)
1.Collateral Ratio Drops Below Threshold:
If market volatility causes the collateral ratio to fall below a preset liquidation threshold (e.g., 120%)
2.Trigger Liquidation:
Any user can invoke the liquidation function, initiating the liquidation of pledged assets.
3.Sale and Debt Repayment:
The contract sells part of the collateral to repay the TitanUSD debt and burns the corresponding amount.
4.Remaining Collateral Return:
The remaining collateral is returned to the original pledger, while the liquidator receives an incentive (e.g., 1-3%).
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