Aave Liquidations vs Guardian Rescue
Compare the true cost of Aave liquidation (5-10% penalty) vs Guardian Rescue (2.5% fee cap). See why proactive rescue saves money.
The Cost of Liquidation
When a liquidator seizes your collateral, you pay a 5-10% bonus. On a $10,000 position, that's $500-$1,000 lost instantly. You also lose control of when and how your position is closed.
The Cost of Rescue
Guardian Rescue charges a maximum of 2.5% (250 bps) of the repaid debt, charged only on successful execution. For the same $10,000 position, the maximum fee is $250 — less than half the minimum liquidation penalty.
Non-Financial Differences
Liquidation is involuntary and happens at the worst possible time. Rescue is opt-in and can be authorized in advance. Liquidation seizes your best collateral; rescue uses your specified collateral.
When Rescue Doesn't Make Sense
If your health factor is above 1.15, you don't need either. If your debt is below $1,000, Guardian Rescue may not be available. In those cases, manual position management is the right approach.