# Liquidation The Convergent protocol relies on the Pyth JITOSOL:USD price feed for accurate collateral valuation and facilitates USV borrowing and liquidation mechanism. When a Position falls below a minimum collateralization ratio of 110%, it is considered under-collateralized, and is vulnerable to liquidation. ## **Trigger of liquidation** To guarantee that the entirety of outstanding USV supply is backed by collateral, any Position that falls under the 110% minimum collateral ratio will be closed, i.e. liquidated. The Nexus will absorb the debt and its collateral will be distributed among all Nexus Deposit users on a pro-rata basis. ## Implication of liquidation The full amount of USV borrowed is still retained by the owner of the Position, but they experience an overall loss of approximately 10% in value. Therefore, it is vital to maintain a ratio above 110%, preferably above 150%. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.convergent.so/convergent/convergent-protocol-v1/liquidation.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.