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%).