User Position Health

If your personal loan-to-value ratio rises above the liquidation threshold (due to collateral value dropping or debt increasing), your position may be liquidated. During liquidation, a portion of your collateral is sold to repay your debt, and a liquidation penalty applies. You can see details of the configuration on the transparency page in the app.

Altitude's rebalancing process helps maintain healthy vault-level positions, but individual users are still responsible for monitoring their own LTV and adding collateral if needed.

The section below covers a different scenario: what happens if the entire vault faces liquidation. This is rare and requires multiple safety mechanisms to fail simultaneously.