OpenLeverage | Docs
The OpenLeverage protocol utilizes smart contracts for liquidating positions. Unlike a traditional centralized exchange, which performs the liquidations, the OpenLeverage protocol is open to all community members to compete to liquidate positions that have fallen short on necessary collateral. By completing a liquidation, the community member will receive $OLE rewards.
When the margin balance in the position is lower than the maintenance level, the position will be available to liquidate. Anyone can call the clearance smart contract to initiate liquidation of the position with insufficient margin. The remainder of the liquidation position will be traded back to the mortgage assets on the DEX and returned to the lenders.
Under the "More" menu, select "Liquidation" to see all available positions. If any position is available for liquidation, a button "Mark Liquidating" will become available. Click "Mark Liquidating" to call the smart contract, and the position status will then show "Liquidate." This is a two-step process to avoid flash loan attacks.
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