> For the complete documentation index, see [llms.txt](https://docs.term.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.term.finance/protocol/term-repos/defaults/liquidation-protection.md). # Liquidation protection Borrowers are protected against excessive liquidations. The amount that can be liquidated through the `batchLiquidation`function cannot exceed the minimum amount necessary to bring the borrower's margin ratio back to the initial margin ratio (in the case of margin deficit) and the minimum amount necessary to cover a borrower repurchase price (in the case of failure to repay) after adjusting for [liquidated damages](/protocol/term-repos/terminology.md#liquidation-penalty). This is in contrast to arbitrary close factors found in other lending protocols and should protect against excessive liquidations. {% hint style="info" %} Liquidation protection will be enforced only to the extent the fair market value of collateral less a borrower's outstanding repurchase obligation exceeds the de minimis collateral threshold to avoid an infinite liquidation loop. {% endhint %} --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.term.finance/protocol/term-repos/defaults/liquidation-protection.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.