> ## Documentation Index
> Fetch the complete documentation index at: https://dev.jup.ag/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Liquidate

> Liquidate an underwater borrow position

Liquidate a position that has exceeded the protocol's liquidation threshold. You pay the borrow token (or absorb) and receive collateral. The SDK returns instructions that use address lookup tables; the transaction is built as a versioned (v0) transaction.

## Liquidate

<Steps>
  <Step titleSize="h2" title="Import Dependencies">
    Import web3.js for connection and versioned transactions, the borrow SDK, and BN for the debt amount.

    ```typescript theme={null}
    import {
      Connection,
      Keypair,
      TransactionMessage,
      VersionedTransaction,
    } from "@solana/web3.js";
    import BN from "bn.js";
    import { getLiquidateIx } from "@jup-ag/lend/borrow";
    import fs from "fs";
    import path from "path";
    ```

    <Note>
      `getLiquidateIx` returns instructions and address lookup table accounts. Optional params: `colPerUnitDebt`, `absorb`, `to` (recipient of collateral).
    </Note>
  </Step>

  <Step titleSize="h2" title="Load keypair and set parameters">
    Load the signer and create the connection. Set the vault and the amount of debt to liquidate.

    ```typescript theme={null}
    const KEYPAIR_PATH = "/path/to/your/keypair.json";
    const RPC_URL = "https://api.mainnet-beta.solana.com";
    const VAULT_ID = 1;
    const DEBT_AMOUNT = new BN(100_000); // Debt to liquidate (borrow token base units)

    function loadKeypair(keypairPath: string): Keypair {
      const fullPath = path.resolve(keypairPath);
      const secret = JSON.parse(fs.readFileSync(fullPath, "utf8"));
      return Keypair.fromSecretKey(new Uint8Array(secret));
    }

    const userKeypair = loadKeypair(KEYPAIR_PATH);
    const connection = new Connection(RPC_URL, { commitment: "confirmed" });
    const signer = userKeypair.publicKey;
    ```

    <Warning>
      Only positions that are liquidatable (e.g. LTV above threshold) can be liquidated. The liquidator typically receives collateral; ensure you have the borrow token to pay the debt if required by the vault.
    </Warning>
  </Step>

  <Step titleSize="h2" title="Build liquidate instructions">
    Get the liquidate instructions and address lookup table accounts.

    ```typescript theme={null}
    const { ixs, addressLookupTableAccounts } = await getLiquidateIx({
      vaultId: VAULT_ID,
      debtAmount: DEBT_AMOUNT,
      connection,
      signer,
    });

    if (!ixs?.length) {
      throw new Error("No liquidate instructions returned by Jupiter Lend SDK.");
    }
    ```

    <Info>
      You can pass optional `to` (PublicKey) for the collateral recipient, `absorb` (boolean), and `colPerUnitDebt` (BN) for pricing. Omit them to use defaults (e.g. signer as recipient).
    </Info>
  </Step>

  <Step titleSize="h2" title="Build versioned transaction and send">
    Build the v0 message with instructions and lookup tables, sign, send, and confirm.

    ```typescript theme={null}
    const latestBlockhash = await connection.getLatestBlockhash();
    const message = new TransactionMessage({
      payerKey: signer,
      recentBlockhash: latestBlockhash.blockhash,
      instructions: ixs,
    }).compileToV0Message(addressLookupTableAccounts ?? []);

    const transaction = new VersionedTransaction(message);
    transaction.sign([userKeypair]);

    const signature = await connection.sendTransaction(transaction, {
      skipPreflight: false,
      maxRetries: 3,
      preflightCommitment: "confirmed",
    });
    await connection.confirmTransaction(signature, "confirmed");

    console.log("Liquidate successful! Signature:", signature);
    ```

    <Info>
      Liquidation improves protocol health by closing underwater positions. The liquidator is incentivized with a discount on collateral or similar mechanism per vault design.
    </Info>
  </Step>
</Steps>

<AccordionGroup>
  <Accordion title="When can a position be liquidated?">
    When the position's loan-to-value (LTV) or health factor crosses the vault's liquidation threshold. The exact rules and incentives are vault-specific.
  </Accordion>

  <Accordion title="Liquidator flow">
    As liquidator you typically supply the borrow token (or use absorb) and receive collateral. Check the vault's liquidation docs for exact parameters and rewards.
  </Accordion>
</AccordionGroup>

## Full code example

```typescript expandable theme={null}
import {
    Connection,
    Keypair,
    TransactionMessage,
    VersionedTransaction,
} from "@solana/web3.js";
import BN from "bn.js";
import { getLiquidateIx } from "@jup-ag/lend/borrow";
import fs from "fs";
import path from "path";

const KEYPAIR_PATH = "/path/to/your/keypair.json"; // Path to your local keypair file (update this path)
const RPC_URL = "https://api.mainnet-beta.solana.com"; // RPC endpoint
const VAULT_ID = 1; // Target vault (market)
const DEBT_AMOUNT = new BN(100_000); // Debt to liquidate, in smallest units (borrow token base units)

function loadKeypair(keypairPath: string): Keypair {
    const fullPath = path.resolve(keypairPath);
    const secret = JSON.parse(fs.readFileSync(fullPath, "utf8"));
    return Keypair.fromSecretKey(new Uint8Array(secret));
}

// 1. Load user keypair and establish connection
const userKeypair = loadKeypair(KEYPAIR_PATH);
const connection = new Connection(RPC_URL, { commitment: "confirmed" });
const signer = userKeypair.publicKey;

// 2. Get liquidate instructions from SDK
const { ixs, addressLookupTableAccounts } = await getLiquidateIx({
    vaultId: VAULT_ID,
    debtAmount: DEBT_AMOUNT,
    connection,
    signer,
});

if (!ixs?.length) {
    throw new Error("No liquidate instructions returned by Jupiter Lend SDK.");
}

// 3. Build versioned (v0) transaction with address lookup tables
const latestBlockhash = await connection.getLatestBlockhash();
const message = new TransactionMessage({
    payerKey: signer,
    recentBlockhash: latestBlockhash.blockhash,
    instructions: ixs,
}).compileToV0Message(addressLookupTableAccounts ?? []);

const transaction = new VersionedTransaction(message);
transaction.sign([userKeypair]);

// 4. Send and confirm the transaction
const signature = await connection.sendTransaction(transaction, {
    skipPreflight: false,
    maxRetries: 3,
    preflightCommitment: "confirmed",
});
await connection.confirmTransaction(
    { signature, ...latestBlockhash },
    "confirmed"
);

console.log("Liquidate successful! Signature:", signature);
```