How Liquidation works?

In order to mint an asset you always need to provide a collateral as 300% of desired minted amount. Asset must be backed by 300% collateral at any time, if collateral amount is less than 270%, your position will be liquidated: asset will be automatically burned and you will get your collateral back with -30% penalty. Example: you've minted 100$ worth of BTC, so you've provided 300$ worth of TONs. if price of TON goes down by 10% and BTC price stays the same, worth of your collateral TON is now 270$ so 270%, in that case your position will be liquidated and your BTC will be burned and TONs will be returned to your wallet with 30% penalty, so only 189$ worth of TONs will be returned. Same logic applies if BTC price is going up, you will need to add more collateral to keep 300% ratio, otherwise you will be also liquidated.

That's why it's really important to keep the ratio on 300% or above :)