Liquidations in Normal Mode

Liquidations in Normal Mode (TCR >= 150%)

Scenario	Liquidation Action
MCR > ICR; SP < shuttle debt	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. All remaining collateral and debt that was not liquidated (minus the $USC20 liquidation reserve) is redistributed to active shuttles (i.e. debt is socialised).
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