How to avoid liquidation
We highly recommend that you keep an eye on your "Open position", so you can add collateral or repay BUSM, to avoid liquidation.
One method to avoid liquidation is to add more collateral to your position, xBOMB.
To do this, if you haven't already, purchase BOMB and then convert to xBOMB so you are holding the correct yield bearing asset.
Once you are holding xBOMB, head over to the busm.money xBOMB pool and add your collateral. To borrow zero BUSM do not enter anything in the "BORROW BUSM" section.
Another viable strategy is to follow the above steps and then borrow a small percentage of BUSM, for example 25%. If you previously borrowed more than 25%, this will decrease your liquidation price to a more comfortable level.
The other method to avoid liquidation is to simply repay some/all of your BUSM.
Once you have repaid your BUSM, your liquidation price will become lower, making your position safer.
An in depth guide for liquidations can be found here.
In short, you lose the collateral you supplied however you keep the BUSM you borrowed and you also no longer have to pay off your debt.
Last modified 1yr ago