Liquidation

Health factor = (Floor Price * Liquidation Threshold) / Principal with Interests.

When health factor goes under 1, the NFT goes to the auction and the borrower has 48 hours of liquidation protection period.

if the borrower pays the debt, the auction is finished. The borrower must pay 5% of the debt to the highest bidder at the time of borrower’s paying the debt.

Opensea’s collection price from Chainlink is used for the floor price.