> For the complete documentation index, see [llms.txt](https://docs.gage.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gage.cash/start-here/no-liquidation.md).

# No liquidation, defined

Every time the words appear on gage, they carry the same definition:

{% hint style="success" %}
**Nothing can touch your collateral before expiry; at expiry you choose.**
{% endhint %}

## What it means

* **No price can trigger anything.** The contracts never read a price in the deal path. A 50% drop on day three changes nothing about the deal. There is no health factor, no margin call, no keeper watching for a threshold.
* **The date is the only clock.** Expiry is the funding time plus the term, 7 or 21 days. Nothing before that date has any effect on custody.
* **You choose at expiry.** Pay the cap and reclaim, or walk away and keep the USDG. Both are legitimate outcomes. The product is designed so that walking away is a decision, not a failure.
* **Grace belongs to the borrower.** After expiry there is a grace window in which only the borrower can act. A lender cannot claim inside it. It is sized so a chain outage cannot cost a borrower their collateral.

## What it does not mean

* It does not mean the collateral is safe from your own decision. If you miss the grace window, the lender keeps your collateral. That is the one way to lose it, and it is why [reminders](/borrow/reminders.md) are part of listing.
* It does not mean the price cannot move against you. If you walk away because the collateral fell, the fall was still real. You simply kept the USDG and gave up the collateral.
* It does not mean a lender is protected from price. A lender who ends up holding the collateral holds it at whatever it is worth then.

## Why the design is this way

Traditional lending against volatile collateral needs an oracle to decide when to sell, and a market to sell into. Both fail in the moments that matter. gage removes both. The lender's protection is the discount they buy at, not a sale on a bad day. The borrower's protection is time: a fixed date and a grace window, and nothing else with a say.

See [Security invariants](/protocol/invariants.md) for how this is enforced in the contracts.


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