# Liquidation The liquidation occurs only if the loan is not repaid on the date predefined at the time of the loan. The NFT then automatically enters the liquidation process. The status of your loan turns red and displays "Auction" in your [Dashboard](https://app.kairos.loan/dashboard). The NFT is put up for sale through a Dutch auction mechanism. The starting price is defined as 3x the maximum loanable at the time of the loan down to zero. At any time the NFT can be purchased. As long as the NFT is not sold, the liquidating borrower can buy back this NFT at the original loan price plus the interest due for the additional term. --- # 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://userdoc.kairos.loan/kairos-loan-user-guide/liquidation.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.