What if not repaid

Lender: reclaim collateral (liquidation)

This is the "liquidation" path when the Dutch auction fails to find a new lender and the borrower has not repaid.

function reclaim(uint256 _loanId, bool _useProxy) external;

Flow

• Check Loan is valid.

• Check TX is sent by lender.

• Check loan is called.

• Check AUCTION_DURATION has passed.

• Cancel the loan (loan.borrower = address(0)).

• Determine the recipient wallet - lender's address or Gnosis Proxy Wallet.

• Transfer all collateral to the lender.

• Emit LoanReclaimed.

At this point the lender fully owns the conditional token position and bears any upside/downside.