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?
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
Thanks! What’s the name Venus uses to call this threshold? I know the LTV threshold (for the collateral token) is called “Collateral Factor”.
Liquidation price? No other specific name in Venus
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