Liquidation is a process by which a cryptocurrency account is closed and the funds are returned to the account holder. In most cases, liquidation is triggered when the account balance reaches a certain point, known as the liquidation point. This point is determined by the exchange and is usually set at a certain percentage of the account's total value. However, in some cases, an account may not reach the liquidation point but still be liquidated. This can occur if the account holder fails to maintain a sufficient balance in their account, or if the exchange believes the account is at risk of being hacked or otherwise compromised. In such cases, the exchange may choose to liquidate the account in order to protect the funds and other users on the platform.
