> For the complete documentation index, see [llms.txt](https://docs.bonzo.finance/hub/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bonzo.finance/hub/developer/bonzo-lend/liquidation-bots-beta.md).

# Liquidation Bots (Beta)

{% hint style="warning" %}
**Disclaimer:** This tutorial is for educational purposes only. Liquidations involve financial risk. All participants should ensure compliance with applicable laws and regulations in their jurisdiction before performing any liquidation activities.
{% endhint %}

In the Bonzo Protocol, liquidation occurs when a borrower's collateral value falls below a certain threshold due to changes in asset prices or accrued interest. Liquidators can repay a portion of the borrower's debt and receive a liquidation bonus on the collateral they obtain. This process helps maintain the protocol's solvency and incentivizes liquidators. 

This tutorial will demonstrate how to perform a liquidation on the Bonzo Protocol deployed on the Hedera blockchain using a custom smart contract and a Hardhat script.

#### **Core Concepts:**

* **Collateral Asset**: The asset supplied by the borrower.
* **Debt Asset**: The asset borrowed by the borrower.
* **Health Factor**: A value representing the safety of the borrower's position. A health factor below 1 indicates that the position is undercollateralized and can be liquidated.

#### **Example Code & Script Repositories:**

* **Smart Contract**: [LiquidationContract.sol](https://github.com/Bonzo-Labs/bonzo-finance-contracts/blob/main/contracts/examples/LiquidationContract.sol)
* **Sample Scripts**: [liquidationFlashLoan scripts](https://github.com/Bonzo-Labs/bonzo-finance-contracts/tree/main/scripts/liquidationFlashLoan)


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.bonzo.finance/hub/developer/bonzo-lend/liquidation-bots-beta.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.