# Liquidation

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Liquidation is a process that occurs when [HF](https://apollo-protocol.gitbook.io/apollo-protocol/assets/risk-parameters#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](https://apollo-protocol.gitbook.io/apollo-protocol/function/depositing), 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](https://apollo-protocol.gitbook.io/apollo-protocol/assets/risk-parameters).

### 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.