# LIQUIDATIONS

The previous **'RISK MECHANICS'** section highlights the dual vectors of risk that borrowers on **UNBRK™** choose to undertake.\
This section briefly explains what happens when a borrower becomes insolvent, or is past due on some loan without rollover protection.

**UNBRK™ Protocol** allows third party liquidators to remove bad debt from its system through incentivized selling of borrower collateral. This incentive may be anywhere between 2-10%, depending on specific collateral risks such as liquidity depth, unstaking queues and so on.

**UNBRK™ Protocol** provides a single point of entry for liquidators: the **UBKLiquidationsEngine** contract.

Liquidators monitor **UNBRK™** infrastructure such as events, subgraphs and contracts to discover at-risk borrowers.

Upon discovery of such positions, and the confirmation of their status by **UBKLiquidationsEngine**, liquidations are allowed to proceed on a per-pool, per-collateral basis.

As specified in the **'RISK MECHANICS'** section, undercollateralization is a global risk vector, meaning any ongoing loan of an undercollateralized borrower on **UNBRK™** can be liquidated upon this condition. Loan maturity violations are per-pool risk vectors, meaning only that loan can be liquidated if a borrower remains otherwise overcollateralized at the time of the temporal violation.<br>

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