The process involves the following steps:

1. BLPs Take Over Liquidated Positions:
   • If liquidation is triggered, all open orders are immediately canceled.
   • The liquidation engine takes over the user’s entire position.
   • These positions are closed against BLPs at the bankruptcy price plus half of the Maintenance Margin (MM/2) as an incentive.
2. Insurance Fund Subsidizes Incentives to BLPs:
   • If the remaining margin is larger than half of the Maintenance Margin (MM/2), the difference is accumulated into the insurance fund.
   • If the remaining margin is insufficient to pay the incentive to the BLPs, the insurance fund will cover the shortfall (i.e., the insurance fund pays Maintenance Margin / 2 - Remaining Margin).
   • If the insurance fund cannot cover the incentive, Flipster will trigger an Auto Deleveraging Liquidation event. This event automatically deleverages opposing trader positions by profit and leverage priority.