Liquidation

Users who haven't withdrawn eUSD/peUSD:

Considering the presence of dynamic eUSD minting rates, the likelihood of liquidation by Lybra Finance against Match Finance is low. Therefore, if users haven't withdrawn eUSD/peUSD, individual liquidation events won't occur. In the extremely rare scenario where Lybra Finance or Match Finance enters a global liquidation mode, the protocol will employ risk reserves and debt restructuring to facilitate the liquidation.

Users who have withdrawn some eUSD/peUSD:

• Users will be liquidated when the collateral ratio is below 150%

• Collateral ratio for User: ETH deposit /borrowed eUSD

• Users can deposit ETH and Match Finance contracts will mint eUSD. If the user doesn't borrow the eUSD, they still can enjoy the eUSD rebase and not count as "borrowed eUSD"

Given that Match Finance has set a maximum withdrawal ratio of 80%, even when users withdraw eUSD/peUSD, the liquidation risk is significantly lower than in normal minting situations. In the event of an extreme scenario triggering individual user liquidation, Match Finance will prioritize internal liquidation (soft liquidation) instead of relying on Lybra Finance for liquidation. In this case, the liquidation penalty is set at 10%, with a one-time liquidation ratio of 50%, both considerably lower than regular liquidation procedures, aiming to reduce user losses.