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Did a quick check in subgraph, and found ids with <1 health factor. Should not they be liquidated instantly? like 0xc49b59301be4d9660961f62fbeea0e234e3a53b5, 0xc65ee4f20226ff0f7aa546a368036e640c57d3be, both health factor even < 0.1. Did I miss something here?

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  • Got a link to the graph data itself?
    – Bruce
    Nov 9, 2022 at 3:55

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Ah this looks like a case of bad debt. On the first account, we can see that the collateral of the user is 0.011901001916624049 eth. In other words, it would cost more in gas to liquidate the user than a liquidator would gain from liquidation. Second account is similar at 0.020779371299213468 eth.

This can happen sometimes when the market move very quickly, or liquidators do not see a user in proper time to liquidate when there is a good surplus of collateral for the user (ie right after they dip below the <1 health factor range). Aave has an insurance fund for this I believe, funded by protocol fees. Its usually a pretty rare occurrence, but you seem to have found a couple!

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  • yes, felt too easy to pick up, thought it may be a trap instead... Nov 9, 2022 at 20:06

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