> For the complete documentation index, see [llms.txt](https://docs.gibble.xyz/app-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gibble.xyz/app-docs/main-features/points-market-trading/liquidation.md).

# Liquidation

If you have a Buy offer accepted by a Seller or you accepted a Sell offer from a Seller and the seller didn't settle the offer within the settlement phase you will receive a part of seller's collateral locked. The amount of collateral is based on the number of days since the acceptance of offer at the end of settlement phase.&#x20;

The equation for the liquidation curve below determines the amount of collateral you will receive as a buyer on liquidation.

If the ***climb rate*** is represented by **cr**, ***days passed*** since the order was filled is **dp** and ***collateral*** is represented by **c**. Then following formulae denotes the path of the curve

$$
y = c \times \frac{cr \cdot dp^2}{1 + cr \cdot dp^2}
$$

No action needed.

<br>


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