Overview

Infinity runs a competing dual-channel External/Internal liquidation process for Tokens, Floating Rate Positions, and Fixed Rate Positions in an attempt to achieve the best execution. In this process, it simultaneously:

  • Externally: seeks bids from counterparties for such positions, and

  • Internally: queries other exchanges in the background (e.g. Uniswap) for prices

Within five (5) seconds, Infinity will then automatically liquidate positions at the best price via the respective channels accordingly. When an account is liquidated, a [ 5 ]% charge on assets is taken as a penalty fee and split 50/50 between the Infinity Treasury and the Liquidator.

Which Assets Do We Liquidate?

In determining which assets to liquidate, we take into account:

  • the biggest contributors to risk

  • the liquidity of the underlying markets both on Infinity, and externally

  • the correlation of such assets

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