# Liquidations

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**This documentation is a work in progress!**
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Anyone can liquidate a [ICDP](https://kresko.gitbook.io/kresko-docs/fundamentals/cdps/icdp) under the [liquidation threshold](https://kresko.gitbook.io/kresko-docs/fundamentals/cdps/..#liquidation-threshold) by repaying [debt](https://kresko.gitbook.io/kresko-docs/fundamentals/cdps/..#debt-value) of the position, increasing its [Collateralization Ratio](https://kresko.gitbook.io/kresko-docs/fundamentals/cdps/..#collateralization-ratio). The repaid value, plus a liquidation incentive, is seized from the [collateral](https://kresko.gitbook.io/kresko-docs/fundamentals/cdps/..#collateral-deposit-value) and sent to the liquidator. 

The liquidator decides which [Kresko Asset](https://kresko.gitbook.io/kresko-docs/fundamentals/kresko-assets) to repay and the [Collateral Asset](https://kresko.gitbook.io/kresko-docs/fundamentals/collateral-assets) to seize in return.

## Liquidation Process

While a CDP’s collateral and debt can be composed of several assets, liquidations operate exclusively on **one debt asset and one collateral asset** at a time.

If the CR remains below the LT after a liquidation call, it is subject to additional liquidations up to the [Maximum Liquidation Ratio](https://kresko.gitbook.io/kresko-docs/liquidations#maximum-liquidation-ratio). 

## Example

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#### **Example** 

* The liquidation incentive is set at 5% 
* Close fee of the Kresko Asset is set at 0.5%. 

Liquidator repays $100 worth of debt. 

The seized collateral will be 105% of the repay value so the liquidator seizes $105 worth of collateral. 

The protocol receive the close fee of 0.5% which equals $0.5.
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