> For the complete documentation index, see [llms.txt](https://limitless.gitbook.io/ramm/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limitless.gitbook.io/ramm/instrument-examples-and-usage/individual-creditline/defaults-and-liquidations.md).

# Defaults & Liquidations

All loans originated by the creditline are callable, which means the managers/validators can request the loan to be repaid by the borrower. If this request is not met before the end of a grace period, the collateral would be sold via a dutch auction mechanism, where the proceeds would be transferred back to the creditline contract, to be split between the vault and the managers(who can claim via **`longZCB`** redemptions) 

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