PIP-61 Allow partial repay on insured liquidations

Abstract

In the event of liquidation, allow insured positions to partially repay their debt + the penalty fee to get the position below the credit limit threshold and keep the position open on JPEG’d.

Background

Currently insured positions that get liquidated have a time window to repay. However they need to repay the full amount of their debt and close their positions.

This proposal aims to make repayment more user friendly by allowing users to partially repay their debt on insured liquidated positions to get their health to acceptable levels. The positions would thus be kept open on JPEG’d, accrue interest and allow the user to still benefit from the power of their borrows.

Specification

For insured positions and during the recovery period, allow users to get their position back to safe health levels (below the credit limit threshold) by partially paying back the debt + the liquidation fee.

The liquidation fee would be calculated the same way as today and apply to the whole debt.

Positions brought below the credit limit threshold during the recovery period would remain open on JPEG’d