> For the complete documentation index, see [llms.txt](https://docsv1.arkadiko.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docsv1.arkadiko.finance/protocol/auctions.md).

# Liquidations

forced liquidations that keep the system healthy

In order to keep USDA sufficiently backed by assets, a mechanism is put into place to liquidate unhealthy Vaults. Once the Liquidation Ratio of a Vault drops below the treshold, the Vault is tagged for liquidation and the assets can be bought at a discount. 

Since launch, we've democratised liquidations by releasing a way to participate in them without running complex off-chain infrastructure:

Liquidations happen through the [Liquidation Pool.](/protocol/auctions/liquidation-pool.md)