Paying back your loan on time and keeping an eye out for any communication regarding your due amounts from the EQIFi Team is of the essence to ensure a well-functioning ecosystem.
Our Legal Disclaimer clearly states that "You understand and agree that you use this website, the Platform, the Protocols, Apps, your Account, Vaults and/or Wallet, at your own risk" (Legal, EQIFi), which means that when deciding to use one of EQIFi's products, you bear the risk associated with that product.
Additionally, "It is your sole responsibility to regularly check the Site for notices, and other information relating to your Account, failing to do so could result in unrecoverable losses" (Legal, EQIFi), which refers to any form of written communication from the EQIFi Team related to a due amount on a Loan or any other related matter.
"At all times when you have Crypto-Credit (borrowed Crypto-Assets), you must ensure that your Account, Wallet and Vault meets margin requirements, which may change from time to time. You may need, at short notice, to provide the Protocol with additional Crypto-Assets as collateral in order to maintain the borrowing. If you do not do this the Protocol will liquidate collateral and you will be responsible and liable for the losses incurred as a result. Your collateral and other Crypto-Assets are, therefore at risk. Early repayment may incur penalty charges and need not reduce the overall Interest charged" (EQIFi, Legal)
At the moment, the convetion is that if the principal of your loan is above 97% from the collateral, the loan can be liquidated. To be specific, if you took a loan against collateral that decreased in value to $100 and you have borrowed $97, unless you provide the protocol with additional Crypto Assets for collateral, EQIFi can liquidate your loan.
For more Legal information and our Disclaimers, please visit https://eqifi.com/legal/disclaimers.