Cross Margin Lending

Cross Margin means that the protocol will calculate the health-factor of the account and this mode is same with other DeFi lending protocols like Aave V3. The collateral and debt under the account will be considered as a whole. When the market price fluctuates, users can increase health factor by adding new collateral to avoid liquidation.

In this model, the liquidation of collateral will be immediate. The liquidator will repay the debt on behalf of the borrower and take the user's collateral assets at a certain discount price.