# What is Overall Liquidation?

By comprehending and engaging with EpsiLoan as a liquidator, redemption provider, or Keeper, you can capitalize on the diverse mechanisms crafted to uphold the stability of the yUSD stablecoin and safeguard the overall system. It's imperative to maintain a healthy collateral rate to mitigate the risk of liquidation and amplify the potential rewards of involvement in the protocol.

Here's how the liquidation process works in EpsiLoan's Overall Liquidation Mode:

**Triggering Liquidation:**&#x20;

When the EpsiLoan's Overall Collateral Rate drops below 120%, users with a collateral rate below 120% may face full liquidation. This ensures that the system remains solvent and the yUSD stablecoin remains fully backed by collateral assets.

**Liquidation Process:**

&#x20;In a full liquidation scenario, the liquidator is required to pay a certain amount of yUSD to obtain the equivalent value of collateral from the liquidated borrower. This value is determined by multiplying the amount of yUSD paid by the current collateral rate of the borrower, minus 1%.

**Keeper's Reward:**&#x20;

During the liquidation process, the Keeper receives a fixed reward of 1% of the liquidated assets, regardless of the collateral rate of the borrower. This incentivizes Keepers to actively participate in maintaining the stability of the system.

Example Scenario: For instance, if Alice deposits 10 ETH (\~$25,000) and borrows 21,000 yUSD, with a collateral rate of 119%, she may be subject to full liquidation. Bob, a liquidator, provides 21,000 yUSD to obtain Alice's 10 lrETH collateral. Once the liquidation is complete, Alice's debt and collateral both become 0.

By familiarizing yourself with the intricacies of EpsiLoan's liquidation mechanisms and actively engaging with the protocol, you can play a crucial role in ensuring its stability and viability. Whether as a liquidator, redemption provider, or Keeper, your participation contributes to the integrity and resilience of the EpsiLoan Protocol.
