> For the complete documentation index, see [llms.txt](https://techdocs.yeti.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://techdocs.yeti.finance/how-does-yeti-finance-work/borrowing/stablecoin-borrowing.md).

# Stablecoin Borrowing

**Liquidation Risk**

Pure yield-bearing stablecoin borrowing come with low liquidation risk because the dollar value of this collateral shouldn't drop. Low collateral ratio stablecoin strategies have lesser liquidation risk both in **Normal Mode** and **Recovery Mode.** <br>

In both Normal and Recovery Mode, you will be eligible for liquidation if your trove's collateral ratio is below 110%. But in Recovery Mode you are also eligible for liquidation if your [AICR](/how-does-yeti-finance-work/definitions.md#adjusted-individual-collateral-ratio-aicr) (Adjusted Individual Collateral Ratio) is less than the TCR.

<table><thead><tr><th width="302.4522100491122">Trove Status</th><th>Normal Mode</th><th>Recovery Mode</th></tr></thead><tbody><tr><td>ICR &#x3C; 110%</td><td>Liquidation</td><td>Liquidation</td></tr><tr><td>110% &#x3C; ICR<br>and <br>AICR &#x3C; TCR</td><td>Can't be liquidated</td><td>Liquidation</td></tr><tr><td>110% &#x3C; ICR<br>and<br>150% &#x3C; AICR</td><td>Can't be liquidated</td><td>Can't be liquidated</td></tr></tbody></table>

If you keep your **ICR above 110%** and **AICR above 150%**, your trove can never be liquidated under normal mode or recovery mode.&#x20;

Stablecoin collaterals have ratios of above 1.5 for the AICR calculation, which means a lower ICR trove is not going to be eligible for liquidation in recovery mode. For example if you have $10k of YUSD debt along with $11k in stablecoin collateral, say with safety ratio of 1.05, your ICR will be 115.5% and your AICR will be 176% (Assuming adjusted ratio 1.6).\
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**For stablecoin troves, if your trove ICR is above 110%, your AICR will be above 150% too, meaning you can't be liquidated in Recovery Mode or in Normal Mode.** \
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A basic guideline would be keeping some safety threshold in case there are small movements in the stablecoin price .

### TLDR:&#x20;

If your stablecoin trove is at ICR > 115%,  liquidation risk will be low unless the stablecoin collateral depegs, in both normal and recovery mode.\
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