User-triggered Liquidation Swaps

Hey guys,

Today was a big red candle day in the markets. I realized that if a borrower slips to 129.9 c-ratio - assuming you’re not introducing new capital - it’s impossible to self-liquidate in order to get back above 130 c-ratio.

In other words, Jet forces the borrower to wait for their account to go back above 130 c-ratio or wait until it goes all the way down to 125 c-ratio where a liquidation swap can take place.

If the partial liquidations are too small, the swap doesn’t actually help the account of a borrower who wants to “self-liquidate” unless the liquidation puts them well above the 130 c-ratio.

If not, the borrower then has to wait for their account to come down to 125 c-ratio again to trigger yet another liquidation swap, at a lower price, essentially placing them in a vicious cycle from which they cannot escape despite being over-collateralized.

Again, this assumes no new capital coming in to pay down the loan. (If a user is going to introduce new capital, why borrow in the first place?)

I understand there are always trade-offs in automated systems, but there must be a way for the borrower to be able to liquidate their position themselves between 125 and 130 c-ratios in order to escape the vicious cycle described above.

Also, there are no flight logs (transaction records) of liquidation events. This presents a headache for borrowers in terms of keeping necessary tax records.

Did liquidation occur?
How much was liquidated?
At what price?
On what day?

These questions should be answered in the Flight Logs (great name btw).

What are everyone’s thoughts on the above?


P.S. I’m a Jet power user and open to contributing to help improve the platform from a UX perspective.


Hi Matt,

Thank you for the feedback and suggestions. We have noted these points down and we will work on them(we will have to prioritize which to work on first). I personally would like to see liquidation history as well.
Similar topic - we have a poll here that’s related to liquidation notification.

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Matt - we really appreciate you taking the time to type this up and share publicly. This will help make us better. We’re writing up docs to explain most of this and have made tickets to improve the UI and make it explain the path towards liquidation a lot clearer. I’ll share/post here when completed. Please feel free to share any other suggestions you have. Thank you again!

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Thanks Eric. Great to hear. Will check it out.

Anytime! Appreciate what you guys are building here. Very much looking forward to what’s to come for Jet.


We’ve made tickets for all the suggestions you made and will work through the designs and getting them implemented. We also understand there needs to be more content explaining all this so we updated our docs and wrote a summary on liquidations and fees as well. Hope this helps! Understanding Liquidations and Fees on Jet Protocol | by Qiqi | Jet Protocol | Nov, 2021 | Medium


this has been fixed, users can now self-liquidate between 125-130%, thank you we really appreciate the suggestion!

merged PR: Allow withdraw 125 by loganjross · Pull Request #350 · jet-lab/jet-v1 · GitHub

this we’re working on, and will take some time. it requires bigger changes, but we’ll get it done!



Great update! And thanks for making the change so fast.

I wish I had the ability last week… discovered this issue the hard way unfortunately lol

I’m sure all users will welcome it though. It’s really important to have this level of flexibility in such a volatile market.

Thanks again and I look forward to the upcoming updates re the dao.

Jet to da moon!