> For the complete documentation index, see [llms.txt](https://doc.orby.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.orby.network/overview/understanding-liquidations-vs-redemptions-vs-repayment.md).

# Understanding Liquidations vs Redemptions vs Repayment

## What happens during a liquidation?

1. Your shuttle will be closed
2. You lose your 20 $USC Liquidation Reserve deposit (this is sent to liquidator)
3. Lose all your collateral (assuming Orby is in [Normal Mode](/overview/recovery-mode.md#what-is-normal-mode))
4. You get to keep your borrowed $USC

<figure><img src="https://2913283598-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnM953569lZ20u1dw1aCu%2Fuploads%2FIFPVAj9m1fshsc4RWj7w%2FScreenshot%202024-03-07%20at%2011.24.13%20AM.png?alt=media&amp;token=ce46e3d4-b031-4bf6-ab1f-05eab1e9544e" alt=""><figcaption><p><em>The images and data shown are for illustration purposes only</em></p></figcaption></figure>

## What happens during a redemption?

#### If your shuttle was fully redeemed against:

1. Your shuttle will be closed
2. You are not required to pay the 20 $USC Liquidation Reserve deposit (this will be burnt)
3. You lose some of your collateral (redemption rate = 1 USC for $1 worth of collateral)
4. You get to keep your borrowed $USC

<figure><img src="https://2913283598-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnM953569lZ20u1dw1aCu%2Fuploads%2FCWjHpCOwiFqxrarotlu1%2FScreenshot%202024-03-07%20at%2011.49.32%20AM.png?alt=media&amp;token=fcefca5a-9f78-498a-944e-05549c27f51c" alt=""><figcaption><p><em>The images and data shown are for illustration purposes only</em></p></figcaption></figure>

#### If your shuttle was partially redeemed against:

1. Your shuttle will remain open/active and functions as per normal
2. You lose some of your collateral (redemption rate = 1 USC for $1 worth of collateral)
3. Some of your $USC debt would have been repaid by redeemer (amount determined by redemption rate)
4. You get to keep your borrowed $USC

## What happens during a repayment?

#### If you fully repaid your $USC debt:

1. Repay required borrowed $USC + borrowing fee
2. Your shuttle will be closed
3. You are not required to pay the 20 $USC Liquidation Reserve deposit (this will be burnt)
4. You can withdraw all your deposited collateral

#### If you partially repaid your $USC debt:

1. Repay required borrowed $USC
2. Your shuttle will remain open/active and functions as per normal
3. You can withdraw some of your deposited collateral (up to the minimum collateral ratio)