# Liquidations Hashstack uses a dual-liquidation methodology to ensure loans get liquidated in time, removing bad debt from the protocol. Dual-liquidation involves community-backed liquidations along with protocol-backed liquidations. When a loan becomes liquidable, we allow the community to liquidate. However, if the health factor drops further, protocol-managed liquidation bots come into action to remove loans before they create losses. The health factor is used to determine when a loan can be liquidated and who can liquidate loans at which state. (More about health factor [here](https://docs.hashstack.finance/developers/supply-and-borrow/borrow/health-factor)). 1. Hf > 109% - Healthy loan 2. 109% ≥ Hf > 106% - Liquidation call 3. Hf ≤ 106% - Liquidable by anyone 4. Hf ≤ 104.5% - Liquidable by protocol Hashstack currently uses [pragmaoracle.com](https://pragmaoracle.com) (formerly Empiric) as its trusted oracle. The oracle is used at various points in the contracts: 1. Determining the amount of leverage allowed based on the collateral and requested loan USDT value. 2. Computing if a loan is liquidable. 3. Allowing slippage in L3 integrations (Todo). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hashstack.finance/hub/concepts/liquidations.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.