> For the complete documentation index, see [llms.txt](https://v1faq.infinity.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://v1faq.infinity.exchange/infinity-overview/collateral-liquidation.md). # Collateral Liquidation ## Introduction Infinity has a robust collateral management framework enabling you to post a wide variety of assets as collateral. The collateral management and liquidation process centres around a metric called the Health Score. Generally speaking, the higher your Health Score, the lower the chance of liquidation; the lower your Health Score, the higher the chance of liquidation. ## Collateral Assets The following types of assets may be used as collateral with Infinity: * Basic tokens: USDT, USDC, DAI, ETH, WBTC * Deposit tokens: e.g. aETH (Aave), aETH (Compound) * Complex tokens: e.g. Curve LP Tokens, Uniswap V3 LP Tokens ## Liquidation Preference Order When your Health Score drops in value, Infinity may need to liquidate some of the above assets starting with the largest assets and moving down sequentially to the smallest assets. ## Who Performs the Liquidations? The Liquidations are performed automatically by our internal risk management system. Each time a liquidation is performed, there is a 5% penalty applied to those assets. We do not currently have a method to open up the liquidation process to external parties, but are considering that at some point in the future. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://v1faq.infinity.exchange/infinity-overview/collateral-liquidation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.