110%collateral ratios, it is expected that Stability Providers will receive a greater dollar-value of collateral relative to the debt they pay off.
100%most of the time, it is theoretically possible that a Liquity Trove gets liquidated below
100%in a flash crash or due to an oracle failure. In such a case, you may experience a loss since the collateral gain will be smaller than the reduction of your deposit.
$1, liquidations may become unprofitable for Stability Providers even at collateral ratios higher than
100%. However, this loss is hypothetical since LUSD is expected to return to the peg, so the “loss” only materializes if you had withdrawn your deposit and sold the LUSD at a price above
110%. Wasabix will execute the
recallfunction to protect Wasabix's user from losing money when the system meets conditions in above.