# Liquidators' Guide

## What is liquidation?

Liquidation means transferring part of both debt and collateral(+premium) from the account with negative health to the caller. 

## Can a given account be liquidated?

{% hint style="info" %}
Only users with negative health can be liquidated.
{% endhint %}

To find out if account fall under liquidation or not, one may query liquidator-entry-point(`3PAZv9tgK1PX7dKR7b4kchq5qdpUS3G5sYT)`contract,  specifically, `getUserHealth(user)` function. 

The following snippet queries any waves node on the status of  `3PMZCTZjdsVZe2hePquBpE4LCVuZ5JA2PvK` (the argument of `getUserHealth` function):

```
 curl -X 'POST' \
     'https://nodes.wavesnodes.com/utils/script/evaluate/3PJ6iR5X1PT2rZcNmbqByKuh7k8mtj5wVGw' \
       -H 'accept: application/json' \
       -H 'Content-Type: application/json' \
       -d '{
           "expr": "getUserHealth(\"3PMZCTZjdsVZe2hePquBpE4LCVuZ5JA2PvK\")"
           }'
```

The output would be similar to:

```
 {
    "result": {
        "type":"String",
         "value":"bp:2105388966, bpu:1861495565"
         },
    "complexity":5354,
    "expr":"getUserHealth(\"3PMZCTZjdsVZe2hePquBpE4LCVuZ5JA2PvK\")",
    "address":"3PAZv9tgK1PX7dKR7b4kchq5qdpUS3G5sYT"
 }⏎  
```

The important line is #4: it returns `bp` and `bpu` where

 \- `bp` means "borrow power"\
 \- `bpu` means "borrow power used"

```
account_health = (bp - bpu) / bp
```

{% hint style="warning" %}
&#x20;If `bp<bpu` , the account falls under liquidation.
{% endhint %}

## How to liquidate an account?

To liquidate, one need to call `transferDebt` function in *liquidator-entry-point* `(`3PJ6iR5X1PT2rZcNmbqByKuh7k8mtj5wVGw`)`.&#x20;

&#x20;There're 4 parameters in `tranfserDebt` function:

* `borrowReserve`: the reserve address with debt,
* `collateralReserve`: the reserve address with collateral,
* `borrower`: address of the borrower with negative health,
* `liquidateDebtAmount`: an amount of debt to be liquidated;

{% hint style="info" %}
Up to 50% of debt can be liquidated within 1 transaction.
{% endhint %}

The caller needs to maintain positive health after this operation.


---

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```
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```

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