There will never be a liquidation of a user's collateral unless they do it themselves because your debt will only ever go down.
We value the safety of users' deposits more highly than anything else. It is the main reason we chose ALPACA as our yield aggregator.
Scientix Protocol undergoes security reviews and audits. However, there is no guarantee that something bad won't happen. Vaults have an emergency shutdown procedure in such a case. If this procedure is initialized, then all funds will be withdrawn from ALPACA, deposits will be paused, and users can pay down their debt and exit the system safely. Two additional security measures exist to protect the protocol.
First, there is a limit for how much scUSD can be minted from each asset. This limit depends on the level of technical, market, and legal risk for a given asset.
Second, Scientix uses oracle price feeds. If a stable coin's value is under a certain threshold, minting, repaying and liquidations will be paused until its value is back to acceptable levels.
These security measures will protect much of the Scientix synthetic token's value.
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