Borrowing
Liquidations
A trove below 150% can be closed by anyone. The stability pool repays its debt and takes JitoSOL worth up to 110% of it; the rest stays with the borrower.
Liquidation is how Plumb keeps every PLMB backed. When a trove's collateral falls below 150% of its debt at the program's price, anyone can liquidate it. There is no reward for the caller: stability-pool depositors are the ones who gain, and the app lists every trove below 150% in Earn with a Liquidate button.
When the pool covers the debt
The usual case. Say a trove owes 10,000 PLMB and JitoSOL falls until its collateral is worth $14,600, a ratio of 146%.
- The stability pool burns 10,000 PLMB from its deposits, which repays the debt.
- The pool receives JitoSOL worth $11,000, which is 110% of the debt, shared among depositors in proportion to what they lost.
- The remaining $3,600 of JitoSOL stays in the trove, with no debt, for the borrower to withdraw.
The borrower loses 10% of their debt in collateral, not everything above the debt. A trove liquidated at 146% keeps about a quarter of its JitoSOL.
If the trove has less than 110% when it is liquidated, the pool takes all of its JitoSOL and the borrower keeps nothing.
When the pool can't cover it
If the pool holds less PLMB than the trove owes, it repays what it can and takes JitoSOL worth up to 110% of that. The debt left over, and all the JitoSOL left over, are shared among every other trove that has debt, in proportion to their collateral.
Troves that receive a share take on debt and collateral at the liquidated trove's ratio, below 150%, so their own ratios move slightly towards it. This is rare in practice, because an empty pool earns depositors 70% of all interest by itself, but it is why your ratio can change even when you do nothing and prices hold.
If the pool is empty and no other trove has debt, the liquidation fails. Debt is never written off.
What a liquidation needs
- A fresh price. Liquidations use the same checked price as borrowing. If the oracle is stale, liquidations wait, at the moment they matter most. See Risks.
- Every rate that holds debt, at once. The program settles interest everywhere before it redistributes, so one transaction carries all of them. This is one reason each branch has a fixed number of rates and seats.
Staying clear of it
- Keep a buffer. At 200% JitoSOL can fall by a quarter before you reach 150%; at 300% it can halve.
- Watch the liquidation price on the Borrow desk. Below 150% the desk turns into an alarm that says exactly how much JitoSOL to add or PLMB to repay.
- Adding collateral and repaying never need a price, so you can act even while liquidations are paused.
# Liquidations A trove below 150% can be closed by anyone. The stability pool repays its debt and takes JitoSOL worth up to 110% of it; the rest stays with the borrower. Liquidation is how Plumb keeps every PLMB backed. When a trove's collateral falls below 150% of its debt at the program's price, anyone can liquidate it. There is no reward for the caller: stability-pool depositors are the ones who gain, and the [app](/app) lists every trove below 150% in **Earn** with a **Liquidate** button. ## When the pool covers the debt The usual case. Say a trove owes 10,000 PLMB and JitoSOL falls until its collateral is worth $14,600, a ratio of 146%. 1. The stability pool burns 10,000 PLMB from its deposits, which repays the debt. 2. The pool receives JitoSOL worth $11,000, which is 110% of the debt, shared among depositors in proportion to what they lost. 3. The remaining $3,600 of JitoSOL stays in the trove, with no debt, for the borrower to withdraw. :::figure liquidation | The pool's share is capped at 110% of the debt it repays. Whatever is above that cap is the borrower's. The borrower loses 10% of their debt in collateral, not everything above the debt. A trove liquidated at 146% keeps about a quarter of its JitoSOL. If the trove has less than 110% when it is liquidated, the pool takes all of its JitoSOL and the borrower keeps nothing. ## When the pool can't cover it If the pool holds less PLMB than the trove owes, it repays what it can and takes JitoSOL worth up to 110% of that. The debt left over, and all the JitoSOL left over, are shared among every other trove that has debt, in proportion to their collateral. Troves that receive a share take on debt and collateral at the liquidated trove's ratio, below 150%, so their own ratios move slightly towards it. This is rare in practice, because an empty pool earns depositors 70% of all interest by itself, but it is why your ratio can change even when you do nothing and prices hold. If the pool is empty and no other trove has debt, the liquidation fails. Debt is never written off. ## What a liquidation needs - **A fresh price.** Liquidations use the same checked price as borrowing. If the oracle is stale, liquidations wait, at the moment they matter most. See [Risks](/docs/risks). - **Every rate that holds debt, at once.** The program settles interest everywhere before it redistributes, so one transaction carries all of them. This is one reason each branch has a fixed number of rates and seats. ## Staying clear of it - Keep a buffer. At 200% JitoSOL can fall by a quarter before you reach 150%; at 300% it can halve. - Watch the liquidation price on the Borrow desk. Below 150% the desk turns into an alarm that says exactly how much JitoSOL to add or PLMB to repay. - Adding collateral and repaying never need a price, so you can act even while liquidations are paused. > [!DANGER] > Liquidation is final. Once it lands, your debt is gone and so is most of your collateral. The 110% cap limits the loss to about a tenth of your debt, but only when someone liquidates promptly; a trove that drifts further below 150% before anyone acts keeps less.