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2 changes: 1 addition & 1 deletion docs/overview.md
Original file line number Diff line number Diff line change
Expand Up @@ -237,7 +237,7 @@ Aave V4 exposes several configurable parameters that influence liquidation:
| `TargetHealthFactor` | A spoke‑wide value set by the Governor representing the HF to which a borrower should be restored after liquidation. Liquidators repay only enough debt to reach this HF under normal circumstances that do not result in dust collateral or debt remaining. | Must be ≥ the `HEALTH_FACTOR_LIQUIDATION_THRESHOLD` constant. |
| `DUST_LIQUIDATION_THRESHOLD` | Hard‑coded threshold used to prevent extremely small leftover debt. The maximum debt that can be liquidated is increased to ensure that debt or collateral dust less than this threshold does not remain unless the corresponding respective collateral or debt reserve is fully liquidated. | Hard‑coded constant set to 1_000 USD in base units. |
| `maxLiquidationBonus` | Per reserve defined maximum liquidation bonus for a collateral, expressed in basis points (BPS). A value of 105_00 means there is 5_00 extra seized collateral over the amount of debt repaid in base currency. | Must be ≥ 100_00 |
| `healthFactorForMaxBonus` | Spoke‑wide value expressed in WAD units defining the HF below which the max bonus applies. It must be less than or equal to `HEALTH_FACTOR_LIQUIDATION_THRESHOLD` to avoid division‑by‑zero. | `healthFactorForMaxBonus` < `HEALTH_FACTOR_LIQUIDATION_THRESHOLD`. |
| `healthFactorForMaxBonus` | Spoke‑wide value expressed in WAD units defining the HF below which the max bonus applies. It must be less than or equal to `HEALTH_FACTOR_LIQUIDATION_THRESHOLD` to avoid division‑by‑zero. | `healthFactorForMaxBonus`  `HEALTH_FACTOR_LIQUIDATION_THRESHOLD`. |
| `liquidationBonusFactor` | Spoke‑wide percentage (expressed in BPS) specifying the fraction of the max bonus earned at the threshold `HEALTH_FACTOR_LIQUIDATION_THRESHOLD`. It defines the minimum bonus; e.g., a factor of 80_00 yields a bonus equal to 80% of the max bonus when HF equals the liquidation threshold. | liquidationBonusFactor must be ≤ 100_00 |

## Liquidation Process in V4
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