# Qi Protocols — Kill Borrowers.

1. Once a vault is at risk: The liquidator pays 50% of the debt and the liquidated get that amount subtracted from the collateral + a 10% which is the bonus the liquidator gets. After everything is done, the liquidated has approximately 55% less of collateral value, 50% less of debt but keeps 100% the full value of the debt borrowed.
2. Let me show with an example: Imagine an asset with 130% minimum CDR \$1000 collateral \$800 debt (1000/800)x100= 125% (CDR under minimum) This triggers liquidation and: ⁃ Debt is 50% paid — \$400 ⁃ Same amount is subtracted from collateral + 10% = \$440 (\$40 is the liquidator profit) Now the CDR is as follows: \$560 collateral \$400 debt (560/400)x100 = 140% (over minimum CDR). However the original vault owner still has \$800 worth of debt and owes only half of it.
3. In the end the user has \$1000 collateral minus \$440 penalty plus \$800 loan minus \$400 reduced debt = \$960
4. 1000–960 = 40 (40/1000)*100 = 4% net loss

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