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