# Liquidation ## What are liquidations? Liquidations in Agilely ensure that the entire Position supply remains fully backed by collateral. If a Position exceeds the maximum Loan-to-Value (LTV) defined on the platform, it will be subject to liquidation. During the liquidation process, the debt of the Position is canceled and absorbed by the Stability Pool, while the collateral is distributed among Stability Providers. Importantly, the owner of the Position retains the full amount of USDA borrowed and is not required to repay their debt. System Status significantly influences how Liquidations operate. It is crucial to have a clear understanding of Recovery Mode to avoid unexpected liquidation events. ## Who can liquidate Positions? Any user can initiate the liquidation of a Position once it surpasses the maximum LTV threshold. As an incentive for this service, the initiator receives 30 USDA as gas compensation, along with 0.5% of the Position's collateral. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.agilely.io/how-agilely-works/liquidation-and-stablity-pools/liquidation.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.