> For the complete documentation index, see [llms.txt](https://yupana-finance.gitbook.io/yupana-document-portal/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yupana-finance.gitbook.io/yupana-document-portal/liquidation.md).

# Liquidation

## How much is the liquidation bonus/penalty?

The liquidation bonus (or penalty for borrowers) depends on the collateral asset.

Example: Alice deposits 100 TEZ and borrows 500 tzUSD. The Health Factor drops below 1 and its loan is liquidated. A liquidator can repay up to 50% of a single borrowed amount = 250 tzUSD. In return, the liquidator can claim single collateral which is TEZ ( for example, with a 5% bonus). The liquidator claims 50 TEZ + 2.5 TEZ for repaying 250 tzUSD.

Pay attention: you need to take into account Tezos fees.

Can I participate in the liquidations?

Each user can take part in the liquidation. However, there are a lot of people who want to close someone else's loan, and liquidators have to develop their own solutions in order to liquidate loans and receive bonuses first.