# Liquidations in Normal Mode

**Liquidations in Normal Mode (TCR >= 150%)**

| Scenario                                               | Liquidation Action                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| <p>MCR > ICR; SP < shuttle debt</p><p><br><br><br></p> | <p>All the Stability Pool’s $USC is offset with an equal amount of debt from the shuttles that were flagged for liquidation. A fraction of the collateral (equal to the ratio of its offset debt to its entire debt) is shared between Stability Pool depositors and the liquidator.<br><br>All remaining collateral and debt that was not liquidated (minus the $USC20 liquidation reserve) is redistributed to active shuttles (i.e. debt is socialised).</p> |
| MCR > ICR; SP >= shuttle debt                          | All debt from the shuttles that were flagged for liquidation is offset by $USC in the Stability Pool. The liquidated shuttles’ collateral is shared between Stability Pool depositors and the liquidator.                                                                                                                                                                                                                                                       |
| MCR > ICR; SP = 0                                      | All collateral and debt (minus the $USC20 liquidation reserve) is redistributed to active shuttles (i.e. debt is socialised).                                                                                                                                                                                                                                                                                                                                   |
| MCR =< ICR                                             | Nothing done                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

Where:

ICR = Individual Collateral Ratio for CDCETH shuttles

MCR = Minimum Collateral Ratio for CDCETH shuttles

TCR = Total Collateral Ratio for CDCETH shuttles

SP = Stability Pool


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