> ## Documentation Index > Fetch the complete documentation index at: https://docs.kamino.com/llms.txt > Use this file to discover all available pages before exploring further. # Auto-Deleverage > Margin-call grace window with a ramped liquidation bonus over time Auto-deleverage is a softer alternative to immediate liquidation. When a position crosses an unhealthy threshold, the curator (or an off-chain bot) marks it for deleveraging: the borrower receives a grace period to self-deleverage, and only after the grace period elapses does liquidation become available — at a ramped bonus that grows over time. This is a niche feature most curators leave disabled. Standard [Liquidations](https://docs.kamino.com/curators/markets/liquidations.md) (immediate, threshold-triggered) are sufficient for most markets. Enable auto-deleverage when you specifically want a borrower-friendly margin-call window before liquidations open up. ## When this is useful | Curator profile | Recommendation | | - | - | | Public market with retail borrowers | Optional. The grace period is borrower-friendly but adds operational complexity | | Institutional / fixed-term market | Skip. Institutional borrowers prefer immediate, predictable liquidation behavior | | Stable-only / eMode-heavy market | Skip. Correlated-asset liquidations are small and fast | | Newly-listed volatile asset | Optional. If enabled, use a shorter `margin_call_period` (e.g., 4 hours) | ## Market-level enablement | Field | What it does | | - | - | | `autodeleverage_enabled` | Master switch. `1` enables auto-deleverage on the market | | `individual_autodeleverage_margin_call_period_secs` | Default grace period (seconds) between when a position is margin-called and when liquidation opens up. `86400` = 24 hours | | `insolvency_risk_unhealthy_ltv_pct` | LTV at which a position is considered to be in insolvency risk territory and may be marked for auto-deleverage. Default `100` | ## Reserve-level config | Field | What it does | | - | - | | `autodeleverage_enabled` | Per-reserve enablement. Both market and reserve must be `1` for auto-deleverage to apply to positions involving this reserve | | `deleveraging_margin_call_period_secs` | Per-reserve override for the margin-call period. `0` falls back to the market-level value | | `deleveraging_threshold_decrease_bps_per_day` | The position's effective liquidation threshold drops by this many bps per day after margin call. Allows liquidators in over time | | `deleveraging_bonus_increase_bps_per_day` | Liquidator bonus rises by this many bps per day after margin call. Compounds the incentive over time | | `min_deleveraging_bonus_bps` | Floor on the deleveraging-specific bonus | > [tab] SDK > > ## Configure auto-deleverage via SDK > > Auto-deleverage is enabled through standard market and reserve config updates. > > ### Enable on the market > > ```typescript theme={"theme":"css-variables"} > import { > KaminoManager, > DEFAULT_RECENT_SLOT_DURATION_MS, > PROGRAM_ID, > MarketWithAddress, > } from '@kamino-finance/klend-sdk'; > import { LendingMarket } from '@kamino-finance/klend-sdk/dist/@codegen/klend/accounts'; > import { address } from '@solana/kit'; > > const kaminoManager = new KaminoManager(rpc, DEFAULT_RECENT_SLOT_DURATION_MS, PROGRAM_ID); > > const marketState = await LendingMarket.fetch(rpc, marketAddress); > if (!marketState) throw new Error('Market not found'); > const marketWithAddress: MarketWithAddress = { address: marketAddress, state: marketState }; > > const newLendingMarket = { ...marketState }; > newLendingMarket.autodeleverageEnabled = 1; > newLendingMarket.individualAutodeleverageMarginCallPeriodSecs = 86_400n; // 24 hours > newLendingMarket.insolvencyRiskUnhealthyLtvPct = 100; > > const ixs = kaminoManager.updateLendingMarketIxs(adminSigner, marketWithAddress, newLendingMarket); > // submit each ix in order > ``` > > ### Enable on a reserve > > ```typescript theme={"theme":"css-variables"} > import { Reserve } from '@kamino-finance/klend-sdk/dist/@codegen/klend/accounts'; > > const reserve = await Reserve.fetch(rpc, reserveAddress); > if (!reserve) throw new Error('Reserve not found'); > > const newConfig = { ...reserve.config }; > newConfig.autodeleverageEnabled = 1; > newConfig.deleveragingMarginCallPeriodSecs = 0n; // 0 = use market default > newConfig.deleveragingThresholdDecreaseBpsPerDay = 24n; // 0.24% per day > newConfig.deleveragingBonusIncreaseBpsPerDay = 100n; // 1% per day > newConfig.minDeleveragingBonusBps = 0; > > const updateIxs = await kaminoManager.updateReserveIxs( > adminSigner, > marketWithAddress, > reserveAddress, > newConfig, > ); > // submit each chunk in order > ``` > > ### Marking a position for deleveraging > > The `markObligationForDeleveraging` instruction is exposed via the SDK codegen. An off-chain monitor (or any wallet) can submit it once a position breaches `insolvency_risk_unhealthy_ltv_pct`. > > ```typescript theme={"theme":"css-variables"} > import { markObligationForDeleveraging } from '@kamino-finance/klend-sdk/dist/@codegen/klend/instructions'; > import { PROGRAM_ID } from '@kamino-finance/klend-sdk'; > > // Build args and accounts per the instruction's signature, then: > const ix = markObligationForDeleveraging(args, accounts, PROGRAM_ID); > // Sign with the marker's wallet and submit > ``` > > For full args / accounts shapes, see `klend-sdk/src/@codegen/klend/instructions/markObligationForDeleveraging.ts`. > [tab] API > > > [!NOTE] > > > > **Configuring auto-deleverage is not available via the REST API.** The flags live on `LendingMarket` and `ReserveConfig` and are flipped through the **SDK** or **Kamino CLI**. The `markObligationForDeleveraging` instruction is a permissionless on-chain call; off-chain monitors typically submit it directly. > > To monitor positions that have entered or are eligible for the auto-deleverage state, query the on-chain obligation accounts directly. See [Read market data](https://docs.kamino.com/curators/markets/market-data.md). > [tab] Kamino CLI > > ## Configure auto-deleverage via CLI > > Both the market-level and reserve-level fields are part of the standard config schemas. Apply via `update-lending-market-from-config` and `update-reserve-config`. > > ### Market-level > > ```bash theme={"theme":"css-variables"} > yarn kamino-manager download-lending-market-config \ > --lending-market > > # Edit ./configs//market-.json — set: > # "autodeleverage_enabled": 1 > # "individual_autodeleverage_margin_call_period_secs": 86400 > # "insolvency_risk_unhealthy_ltv_pct": 100 > > yarn kamino-manager update-lending-market-from-config \ > --lending-market \ > --lending-market-config-path ./configs//market-.json \ > --mode multisig \ > --multisig > ``` > > ### Reserve-level > > ```bash theme={"theme":"css-variables"} > yarn kamino-manager download-reserve-config \ > --reserve \ > --output ./configs/.json > > # Edit ./configs/.json — set: > # "autodeleverage_enabled": 1 > # "deleveraging_margin_call_period_secs": 0 > # "deleveraging_threshold_decrease_bps_per_day": 24 > # "deleveraging_bonus_increase_bps_per_day": 100 > # "min_deleveraging_bonus_bps": 0 > > yarn kamino-manager update-reserve-config \ > --reserve \ > --reserve-config-path ./configs/.json \ > --mode multisig \ > --multisig > ``` ## The lifecycle When a position's LTV crosses `insolvency_risk_unhealthy_ltv_pct`, an off-chain monitor (anyone, typically a bot) calls `mark-obligation-for-deleveraging`. The position is now margin-called and the program records a timestamp. Standard liquidation is gated by the auto-deleverage state from this point forward. For `deleveraging_margin_call_period_secs` (or the market default if the reserve doesn't override), the borrower has a grace window to repay or add collateral. Once grace ends, the deleveraging state begins to ramp: the effective liquidation threshold drops by `deleveraging_threshold_decrease_bps_per_day` and the liquidator bonus rises by `deleveraging_bonus_increase_bps_per_day`. Each elapsed day makes the position progressively easier to liquidate and progressively more profitable to clear, until a liquidator finally executes. ## Tuning the ramp Two reserve-level fields shape how aggressively the deleveraging state ramps after grace ends. | Field | Higher value means | | - | - | | `deleveraging_threshold_decrease_bps_per_day` | Liquidation threshold drops faster, opening up the position to liquidators sooner | | `deleveraging_bonus_increase_bps_per_day` | Liquidator bonus grows faster, paying executors more for clearing the position | Reference settings: | Risk profile | threshold\_decrease | bonus\_increase | margin\_call\_period | | - | - | - | - | | Borrower-friendly | 12 bps/day | 50 bps/day | 48 hours | | Standard | 24 bps/day | 100 bps/day | 24 hours | | Aggressive (volatile asset) | 50 bps/day | 200 bps/day | 4 hours | ## Off-chain infrastructure Auto-deleverage is useful in proportion to the off-chain monitoring around it. A typical setup: * **Position monitor**: an off-chain service watches `insolvency_risk_unhealthy_ltv_pct` breaches and submits `mark-obligation-for-deleveraging` * **Borrower notification**: when a position is marked, notify the borrower (email / push / wallet message) so they can react inside the grace window * **Liquidator coordination**: standard liquidator infrastructure picks up margin-called positions once the grace window expires For curator markets, you either rely on Kamino's existing infrastructure (for whitelisted markets) or run your own. ## Reference * [Liquidations](https://docs.kamino.com/curators/markets/liquidations.md) — base liquidation mechanics * [Reserve config reference](https://docs.kamino.com/curators/markets/reserve-parameters.md) — `autodeleverage_enabled`, `deleveraging_*` fields * [Market config reference](https://docs.kamino.com/curators/markets/market-config-reference.md) — `autodeleverage_enabled`, `individual_autodeleverage_margin_call_period_secs`, `insolvency_risk_unhealthy_ltv_pct` This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.