# Liquidation Liquidation is determined by borrow collateral factors (used to determine initial borrowing capacity). When an account’s borrow balance exceeds the limits set by collateral factors, it is eligible for liquidation. A liquidator (a bot, contract, or user) can call the absorb function, which relinquishes ownership of the accounts collateral, and returns the value of the collateral, minus a penalty (liquidation factor), to the user in the base asset. The liquidated user has no remaining debt, and typically, will have an excess (interest earning) balance of the base asset. Each absorption is paid for by the protocol’s reserves of the base asset. In return, the protocol receives the collateral assets. If the remaining reserves are less than the target, liquidators are able to buy the collateral at a discount using the base asset, which increases the protocol’s base asset reserves. --- # 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.thora.finance/protocol/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.