Async liquidation flow
For markets using IssuerRedemptionLiquidationAdapter:
Trigger
Health factor breaches threshold, or grace period expires.
LIQUIDATION_CURE
- Interest freezes immediately
- Holder notified with deadline and repayment amount (frozen debt + penalty)
- Repay still possible
Path A — cured
Holder repays within the window → loan closes REPAID, collateral released.
Path B — cure expires
- Redemption submitted to issuer
- Loan enters
LIQUIDATION_SETTLING(irreversible) - Holder notified that repayment is no longer possible
Settlement confirms
Proceeds split recoveredForLP / returnedToHolder → loan closes LIQUIDATED.
Exception — settlement timeout
If confirmation doesn’t arrive within the outer timeout, the loan is flagged for manual LP intervention.
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