> For the complete documentation index, see [llms.txt](https://docs.particle.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.particle.trade/trading/liquidation.md). # Liquidation ## Criteria The LAMM protocol uses a premium model, similar to the fixed term borrowing. The liquidation criteria is that * the interest accrued to the position surpasses the upfront premium, or * the current time crosses 3 days after the LP reclaims the liquidity. As long as these two conditions are not met, even if the price of a token may move in the opposite direction as your trade, the position won't be liquidated. The interest accrual rate is pegged to the underlying AMM, more details are in the [Yield](/earning/provide-liquidity.md#yield) section. More details for LP to reclaim the liquidity are in the [Reclaim](/earning/provide-liquidity.md#reclaim) section. ## Process The frontend surfaces a liquidation page for all positions that are liquidatable or about to become liquidatable. Anyone can be a liquidator for any liquidatable position. The liquidation reward is 5% of the position premium. After liquidation, the LP will get the borrowed liquidity back, together with the swapping fee generated during the borrowing period. The borrower will get a PnL realized at the price point of liquidation event, minus the liquidation reward. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.particle.trade/trading/liquidation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.