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Hi Admin, quick question. So I know if the value

of the collateral token drops significantly and below the LTV, I will be liquidated.

Will the same thing happen if the value of the loan token itself drops significantly below a certain threshold, and I will be liquidated too?

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No. If your loan token drops in value, then you can buy it back for less cost. It’s the same concept behind shorting a token

On the contrary, if it rises, you will be liquidated

Darren Darren Darren 🤟- Автор вопроса

Thanks! What’s the name Venus uses to call this threshold? I know the LTV threshold (for the collateral token) is called “Collateral Factor”.

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