> For the complete documentation index, see [llms.txt](https://apollo-protocol.gitbook.io/apollo-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://apollo-protocol.gitbook.io/apollo-protocol/function/liquidation.md).

# Liquidation

<figure><img src="/files/LItgqwkkHClghnGQdlUN" alt=""><figcaption></figcaption></figure>

Liquidation is a process that occurs when [HF](/apollo-protocol/assets/risk-parameters.md#health-factor) of a borrower falls below 1 because the borrower's collateral does not adequately cover the value of the deposit/borrow. This can happen when the value of the collateral decreases or the value of the deposit/borrow increases with respect to each other. Therefore, after the liquidation, as previously explained in the [Depositing](/apollo-protocol/function/depositing.md), 80% of amount liquidated will be used for APOLLO token buyback.

The liquidation penalty depends on the asset used as collateral. You can find every asset's liquidation penalty in [Risk Parameters](/apollo-protocol/assets/risk-parameters.md).

### How to prevent from liquidation

Users should add more collateral or repay some of their debt before their Health Factor (HF) drops below 1 to prevent liquidations.