> For the complete documentation index, see [llms.txt](https://lend-finance-organization.gitbook.io/lendx-documentation-v1.0/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lend-finance-organization.gitbook.io/lendx-documentation-v1.0/project-info/borrowing/liquidations.md).

# Liquidations

In cases of non-payment, the borrower's mortgaged assets face liquidation. The platform's liquidation penalty, constituting 3% of the total loan amount, is employed to recover the borrower's assets. 

This penalty is divided, with 20% allocated to the lender and 80% transferred to the LendFi platform's liquidity wallet.