Liquidations

Adapter comparison

Adapter	Collateral	recovered / returned shape	Sync?
`DEXSwapLiquidationAdapter`	Divisible ERC20	Tokens for debt+penalty to LP; remainder tokens to holder	Yes
`NFTAuctionLiquidationAdapter`	Indivisible ERC721/1155	Full NFT to LP; surplus as cash side-payment	Yes
`IssuerRedemptionLiquidationAdapter`	RWA / tokenized equity	Settlement proceeds split debt vs surplus	No — async

Fairness contract

All three satisfy the same interface rule:

Take only what’s owed plus the configured penalty. Return the rest.

Enforced by the two-return-value shape of liquidate(), not by adapter-author discretion. Product surfaces must show the breakdown (amount to LP vs amount returned) on every liquidation event.

Async settlement timeline (RWA)

Markets using issuer redemption must disclose to LP and borrower before origination:

Cure window length
Expected issuer settlement period (e.g. T+1 / T+2)
Outer timeout → manual intervention path

See Loan lifecycle and RWA.