> For the complete documentation index, see [llms.txt](https://docs.lends.so/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lends.so/products/p2p-lending/managing-liquidations.md).

# Managing Liquidations

## Understanding Defaults

In the Lends ecosystem, defaults are not the end of the world—they're a feature, not a bug.

### For Borrowers

* **Choice, Not Punishment:** Defaulting is a strategic option, not a forced event.

### For Lenders

* **Collateral Acquisition:** Receive defaulted collateral (minus a small fee).
* **Strategic Asset Accumulation:** Use defaults to acquire desired assets at predetermined rates.

{% hint style="info" %}
💡 **Tip:** Lenders can use Lends as a sophisticated limit order system for acquiring assets.
{% endhint %}

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