# RUJI Liquidations

RUJI Liquidations is a public marketplace for acquiring collateral from at-risk borrowing positions. Unlike traditional DeFi liquidations that favor MEV bots, all liquidated collateral on Rujira is sold via market orders on [RUJI Trade](/core-products/ruji-trade.md) orderbook DEX, and anyone can bid to catch the wicks by placing [Tracking Orders](/core-products/ruji-trade.md#key-features) at a discount to market price.

Market price is defined by [THORChain enshrined oracle](https://dev.thorchain.org/bifrost/oracle.html). To bid on at-risk collateral, users must place tracking orders at a fixed discount to oracle price, the order then rest in the orderbook like a limit order with the limit price updating every block as the oracle price changes. When a liquidation occurs via a market order, it pushes the price below the oracle price and fills the tracking orders from the lowest discount to the highest discount.

### Two Integration Paths

There are two ways to participate in RUJI Liquidations:

#### Path 1: Bid on Liquidated Collateral (for end users)

Allow users to place tracking orders on RUJI Trade at a discount to oracle price. When liquidations occur and your order gets filled, you acquire collateral at your specified discount.

**Best for:**

* Users who want to accumulate assets at discounted prices
* Passive participation without running infrastructure
* DCA strategies during market volatility

[**Bidding Integration Guide**](/developers/ruji-product-integration-guides/ruji-liquidations/bidding-on-liquidations.md)

***

#### Path 2: Build a Liquidation Solver (for developers)

Build off-chain infrastructure that monitors at-risk positions, calculates optimal liquidation routes, and executes liquidations to earn the 0.5% executor fee.

**Best for:**

* Developers building trading infrastructure
* Teams with quantitative/algorithmic capabilities

[**Solver Integration Guide**](/developers/ruji-product-integration-guides/ruji-liquidations/liquidation-solvers.md)

***

### How Liquidations Work

When a Credit Account's loan-to-value (LTV) ratio exceeds its liquidation threshold, the position becomes liquidable:

```
┌─────────────────────────────────────────┐
│         Credit Account                  │
│  Collateral: 1 BTC ($40,000)            │
│  Debt: 32,000 USDC                      │
│  LTV: 80% (Safe)                        │
└─────────────────────────────────────────┘
                    │
                    │  BTC price drops
                    ▼
┌─────────────────────────────────────────┐
│         Credit Account                  │
│  Collateral: 1 BTC ($30,000)            │
│  Debt: 32,000 USDC                      │
│  LTV: 107% (Liquidatable)               │
└─────────────────────────────────────────┘
                    │
                    │  Liquidation triggered
                    ▼
┌─────────────────────────────────────────┐
│  1. Solver executes liquidation         │
│  2. Collateral swapped via RUJI Trade   │
│  3. Bidders' orders filled at discount  │
│  4. Debt repaid to lending pool         │
│  5. Solver earns 0.5% fee               │
└─────────────────────────────────────────┘
```

***

### Fee Structure

| Fee             | Rate                | Recipient                   |
| --------------- | ------------------- | --------------------------- |
| Liquidation Fee | 1% of repaid debt   | 50% Protocol, 50% THORChain |
| Solver Fee      | 0.5% of repaid debt | Liquidation executor        |

***

### Contract Addresses

<table><thead><tr><th width="220">Contract</th><th>Address</th></tr></thead><tbody><tr><td>Ghost Credit</td><td><code>thor1ekkt8wfls055t7f7yznj07j0s4mtndkq546swutzv2de7sfcxptq27duyt</code></td></tr><tr><td>RUJI Trade (BTC/USDC)</td><td><code>thor1dwsnlqw3lfhamc5dz3r57hlsppx3a2n2d7kppccxfdhfazjh06rs5077sz</code></td></tr><tr><td>RUJI Trade (ETH/USDC)</td><td><code>thor1tnd06uswj8033d0kzd5d7zre73u3uc44r2vvez26z5m4kr68vtusf2snva</code></td></tr></tbody></table>

> **Note:** For the full list of RUJI Trade pairs, check <https://rujira.network/developer/deployment> and look for `rujira-fin`.


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