> For the complete documentation index, see [llms.txt](https://help.helioscard.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.helioscard.xyz/credit-line-and-borrowing/liquidation.md). # Liquidation **Liquidation** is when some of your collateral is sold to cover what you owe, because the value of your collateral has fallen too close to your balance. ## Why it happens When you borrow against collateral, the value of that collateral can change. Helios only lets you borrow a portion of its value, which gives you a buffer. But if the collateral's value drops far enough that your balance is no longer safely covered, some of it is sold to bring your account back to a safe level. This protects both you and the system from a position going underwater. ## How to avoid it * **Repay** part of your balance to lower what you owe. See [Repaying your balance](/credit-line-and-borrowing/repaying.md). * **Add more collateral** to increase your buffer. * **Use** [**Sell to repay**](/credit-line-and-borrowing/sell-to-repay.md) proactively, on your terms, before things get tight. * **Turn on Auto top up with collateral** in Settings, so Helios keeps your balance healthy automatically. See [How the credit line works](/credit-line-and-borrowing/how-it-works.md#automation-optional). * Keep an eye on your dashboard, especially in volatile markets. {% hint style="warning" %} The best way to stay in control is to keep a healthy buffer between your collateral's value and your balance — don't borrow right up to your limit. {% endhint %} ## Frequently asked ### At what point does liquidation happen? When your collateral's value falls far enough that your borrowed balance is no longer safely covered. Because you can only borrow a portion of your collateral's value to begin with, it takes a meaningful drop to reach that point. Your dashboard shows how much headroom you have. ### Will I be warned first? Watch your dashboard — it reflects your headroom in real time. Turning on **Auto top up with collateral** lets Helios act before you reach the danger zone. ### How much gets sold? Only enough to bring your account back to a safe level — not your entire collateral. --- # 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://help.helioscard.xyz/credit-line-and-borrowing/liquidation.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.