> For the complete documentation index, see [llms.txt](https://kopio.gitbook.io/kopio-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kopio.gitbook.io/kopio-docs/fundamentals/cdps/icdp/liquidations.md).

# Liquidations

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**This documentation is a work in progress!**
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Anyone can liquidate a [ICDP](/kopio-docs/fundamentals/cdps/icdp.md) under the [liquidation threshold](/kopio-docs/fundamentals/cdps.md#liquidation-threshold) by repaying [debt](/kopio-docs/fundamentals/cdps.md#debt-value) of the position, increasing its [Collateralization Ratio](/kopio-docs/fundamentals/cdps.md#collateralization-ratio). The repaid value, plus a liquidation incentive, is seized from the [collateral](/kopio-docs/fundamentals/cdps.md#collateral-deposit-value) and sent to the liquidator.

The liquidator decides which [Kopio Asset](/kopio-docs/fundamentals/kresko-assets.md) to repay and the [Collateral Asset](/kopio-docs/fundamentals/collateral-assets.md) to seize in return.

## Liquidation Process

While a CDP’s collateral and debt can be composed of several assets, liquidations operate exclusively on **one debt asset and one collateral asset** at a time.

If the CR remains below the LT after a liquidation call, it is subject to additional liquidations up to the [Maximum Liquidation Ratio](/kopio-docs/fundamentals/liquidations.md#maximum-liquidation-ratio).

## Example

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**Example**

* The liquidation incentive is set at 5%
* Close fee of the Kopio Asset is set at 0.5%.

Liquidator repays $100 worth of debt.

The seized collateral will be 105% of the repay value so the liquidator seizes $105 worth of collateral.

The protocol receive the close fee of 0.5% which equals $0.5.
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