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How Can a Borrower “Top Up” Collateral to Avoid Liquidation?

A borrower can avoid liquidation by depositing additional collateral into the smart contract, a process known as "topping up." This increases the total collateral value, raising the collateralization ratio above the maintenance threshold. The smart contract automatically recognizes the deposit and updates the ratio, instantly removing the position from the liquidation queue.

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How Does Liquidation Impact the Borrower’s Position?