# 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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