This is not the same as being liquidated due to a bug in the protocol - price legitimately reached the critical level and the positions were fairly liquidated. Although users may have encountered issues submitting transactions to the web app, that is not the same as a protocol failure. The protocol does not guarantee an orderly or perfectly functioning liquidation engine, nor that the chain will always be available at the critical moment, nor does it provide risk free borrowing and guarantee that users will end up with the same number of coins or more as they started with. It isn't feasible to make such guarantees while delivering for the Kava community at-large. Further, the team would urge community members to take a somewhat conservative position regarding use of SAFU funds, as they represent the community backstop of the protocol and need to be available for all worst case scenarios. Safety of users' funds remains our top priority. Situations like this are taken seriously and require a measured response. We appreciate the support and understanding of the community as we encounter challenges and continue to grow and improve.

This is not the same as being liquidated due to a bug in the protocol - price legitimately reached the critical level and the positions were fairly liquidated. Although users may have encountered issues submitting transactions to the web app, that is not the same as a protocol failure. The protocol does not guarantee an orderly or perfectly functioning liquidation engine, nor that the chain will always be available at the critical moment, nor does it provide risk free borrowing and guarantee that users will end up with the same number of coins or more as they started with. It isn't feasible to make such guarantees while delivering for the Kava community at-large. Further, the team would urge community members to take a somewhat conservative position regarding use of SAFU funds, as they represent the community backstop of the protocol and need to be available for all worst case scenarios. Safety of users' funds remains our top priority. Situations like this are taken seriously and require a measured response. We appreciate the support and understanding of the community as we encounter challenges and continue to grow and improve.

We've gotten some feedback from users who want the SAFU proposal to cover the coins they lost as part of the liquidation on May 19th, as opposed to covering the liquidation penalties. After consideration, the team feels this does not represent the best interests of the Kava community at large. If the community wants to propose a competing SAFU fund proposal, they are welcome to do so and to lobby for votes on behalf of that proposal. However, the team will not be modifying the proposed payouts. Here's our reasoning: When a user borrows against their collateral, they are saying "I agree to have my collateral forcibly sold if price X is reached". Users should keep in mind that borrowing always incurs a level of risk and select positions accordingly. The goal of this proposal is for users who took that risk on, the SAFU fund will compensate the liquidation fees that you paid because they may have attempted to avoid liquidation at the last moment and been unable to.

We've gotten some feedback from users who want the SAFU proposal to cover the coins they lost as part of the liquidation on May 19th, as opposed to covering the liquidation penalties. After consideration, the team feels this does not represent the best interests of the Kava community at large. If the community wants to propose a competing SAFU fund proposal, they are welcome to do so and to lobby for votes on behalf of that proposal. However, the team will not be modifying the proposed payouts. Here's our reasoning: When a user borrows against their collateral, they are saying "I agree to have my collateral forcibly sold if price X is reached". Users should keep in mind that borrowing always incurs a level of risk and select positions accordingly. The goal of this proposal is for users who took that risk on, the SAFU fund will compensate the liquidation fees that you paid because they may have attempted to avoid liquidation at the last moment and been unable to.