Liquidations and Debt
Turbo uses liquidations to overcollateralize boosted FEI, which is a debt.
The FEI strategy doesn't count as collateral, instead it is a second recovery mechanism during failure.
In addition to normal liquidations, Safes can fail when a boosted strategy becomes unwithdrawable (due to a downstream issue such as bad debt/oracle manipulation).
Here is a table to describe how liquidations and unwithdrawable strategies are handled.
|Failure Mode||Collateral Destination||Boosted FEI Destination|
|Successful Liquidation||Sold to repay debt||Withdrawable by Safe owner|
|Failed Liquidation (Bad Debt)||Withdrawable by Safe owner||Force "less" by Tribe DAO (immediate)|
|Strategy unwithdrawable + liquidation||Sold to repay debt||Unwithdrawable|
|Strategy unwithdrawable + overcollateralized||Seized by Tribe DAO (15 day delay)||Unwithdrawable|
Note, if a strategy is unwithdrawable, a team can repay their FEI debt manually during the sieze window and recover their collateral.
The Turbo Savior is a deleveraging mechanism which allows any safe to be permissionlessly "lessed" by any address if nearing liquidation (intially configured at 80% of credit line).
There is no incentive for calling the savior. Owners are responsible for running their own bot or providing incentives to save their safes.
To save a vault, call
/// @notice Save a Safe (call less on owner's behalf to prevent liquidation).
/// @param safe The Safe to be saved.
/// @param vault The Vault to less from.
/// @param feiAmount The amount of Fei to less from the Safe.
and input the desired safe, vault, and fei amount. If the vault is over the 80%, it will be lessed by the input amount.