# b. Liquidation Agent

**Responsibility**: Monitor collateral health and prevent liquidations

**Technical Specifications**:

```
class LiquidationAgent:
    MONITORING_INTERVALS = {
        'safe': 300,      # 5 minutes
        'warning': 60,    # 1 minute
        'danger': 15,     # 15 seconds
        'critical': 5     # 5 seconds
    }
    
    HEALTH_THRESHOLDS = {
        'safe': 2.0,
        'warning': 1.5,
        'danger': 1.2,
        'critical': 1.1
    }
```

**Risk Calculation Algorithm**:

```
Health Ratio = Collateral Value (USD) / Loan Value (USD)Liquidation Distance = (Current Price - Liquidation Price) / Current PriceRisk Score = (1 / Health Ratio) * Volatility Multiplier * Time Decay Factor
```

**Protection Actions**:

1. **Add Collateral**: Increase position health ratio
2. **Reduce Debt**: Repay feUSD to lower LTV
3. **Partial Close**: Reduce position size proportionally
4. **Emergency Close**: Full position liquidation