Grace Period & Health Factor for loans

Graced Period Loans
Loans that are liquidated due to health factor or expired (no redemption by loan deadline) will automatically fall into Graced Period Loans. Users will have up to 12 hours to redeem their loans by paying the loan, interest and a liquidation fee of 10%. Once the Grace Period of 12 hours have expired and the user have yet to redeem their loans, the loans will fall into Liquidated Loans.
Upon liquidation, the liquidated NFT will be sent to XOXNO for a 7 day auction.
Health Factor (HF)
Health factor allows users to easily monitor the health of their loans. Health factor: (Floor Price * Liquidation Threshold) / Debt with Interests.
Liquidation Threshold is set as 90%. The risk level of the health factor:
HF < 1.0 (Red) – Loan will be liquidated and sent to Graced Period Loans. 1.0 <= HF <1.5 (Orange) – Loan should be carefully monitored. 1.5 <= HF (Green)- Loan is in safe zone.