Liquidation

Learn how liquidation works on BAE

BAE protocol won't auto-liquidate the loans if the Borrowers fail to pay in time. However the platform blocks payment of loans for Lenders when due date is reached and it's up to the Lender to liquidate the loan.

How to liquidate the loan

You can find the loans pending liquidation under "Pending Liquidation" status in the Loans or Offers list based on your side in the loan.

As a Lender you can see Liquidate Loan button on the Loan page. Click it and confirm a transaction to liquidate the loan.

What happens on liquidation

• NFT used as a collateral in the liquidated loan is transferred from protocol escrow to the Lender.

• Platform doesn't compensate interest rate not paid by the Borrower.

• Platform doesn't take any fees on liquidation.

• BAE platform marks the loan as liquidated for both parties.

Roadmap

As the protocol grows BAE plans to introduce new options for Borrowers and Lenders to revisit the terms of the loans:

• Refinancing

• Renegotiations