When market volatility causes an agent's collateral ratio to breach minimum boundaries, liquidators burn FAssets to claim collateral at a discount, protecting system backing.
FAssets
Read moreGlossary
Liquidation
Automated protocol mechanism restoring solvency when an agent's collateral falls below safety thresholds.
Related terms
- AgentIndependent participants posting collateral and facilitating source asset custody and redemption.
- Core VaultA shared multi-sig vault on source chains preventing single-agent custody risk.
- FAssetsDecentralized, trustless framework bridging non-smart contract assets onto Flare as ERC-20 tokens.
- FXRPThe first live FAsset on Flare, backed 1:1 by native XRP on the XRP Ledger.
- ChallengerWatchdogs who detect and submit proof of unauthorized agent transactions to trigger liquidation.