Doc/clarification #93
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README.md
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| Note: using `preLCF2 > 1`, one can select at which LTV between preLltv and LLTV the entire position can be pre-liquidated. | ||
| A pre-liquidation close factor higher than 100% means that the whole position is pre-liquidatable. |
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| Note: using `preLCF2 > 1`, one can select at which LTV between preLltv and LLTV the entire position can be pre-liquidated. | |
| A pre-liquidation close factor higher than 100% means that the whole position is pre-liquidatable. | |
| Note: A pre-liquidation close factor higher than 100% means that the whole position is pre-liquidatable, so using `preLCF2 > 1` allows to make the position entirely pre-liquidatable at a LTV between preLltv and LLTV. |
README.md
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| Note: using `preLCF2 > 1`, one can select at which LTV between preLltv and LLTV the entire position can be pre-liquidated. | ||
| A pre-liquidation close factor higher than 100% means that the whole position is pre-liquidatable. | ||
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| The last property ensures that pre-liquidation cannot seize more than the total collateral of the position. |
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| The last property ensures that pre-liquidation cannot seize more than the total collateral of the position. |
misleading imo, this is enforced by Morpho Blue anyway. Plus the close factor is on the debt, not the collat
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wanted to justify the property preLIF2 <= 1 / LLTV because it's not completely obvious
agree that it's misleading because morpho blue enforce it, i'll try to find a better phrasing otherwise we can drop it
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oh and also I thought that you where speaking about the last sentence (and not bullet point)
then ok i understand what you mean. We can say to "prevent decreasing the position's health" (that's the precise reason right?)
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Just rephrased, yes it's to make sure that preliquidation always improve the health of the position (just noticed that it also ensures that pre-liquidation seize less than the total collateral)
README.md
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| Note: A pre-liquidation close factor higher than 100% means that the whole position is pre-liquidatable, so using `preLCF2 > 1` allows to make the position entirely pre-liquidatable at a LTV between preLltv and LLTV. | ||
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| The property `preLIF2 <= 1 / LLTV` ensures that pre-liquidation always improves the health of the position. |
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This is not the only assumption that is needed: health doesn't get worse iff preLIF <= 1 / LTV
This is ensured because pre-liquidations are only allowed for LTV <= LLTV, which implies that 1 / LLTV <= 1 / LTV. So together with the property preLIF2 <= 1 / LLTV (and preLIF <= preLIF2) we get preLIF <= 1 / LTV
| The property `preLIF2 <= 1 / LLTV` ensures that pre-liquidation always improves the health of the position. | |
| The property `preLIF2 <= 1 / LLTV` and the fact that pre-liquidations are only allowed for `LTV <= LLTV` ensure that pre-liquidations can't worsen the health of the position. |
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