Just like you could already do with Maker vaults, you can now also protect your AAVE Positions from liquidation using Summer.fi automated Stop Loss protection.
Why should I use Stop-Loss Protection?
Our automated Stop-Loss Protection frees you from the worry of big losses.
When you set up your stop loss protection, you prevent your position from being liquidated and thus avoid paying the associated liquidation penalty.
How do I set up Stop-Loss on AAVE?
If you are creating a new AAVE position on Summer.fi you will be prompted to set up your Stop-Loss Protection when creating your position.
You will simply need to set your Stop-Loss at your desired LTV ratio depending on your risk tolerance and strategy. If your Position reaches your trigger LTV, your Stop Loss protection will execute and your position will be closed. Your collateral will be sold for the debt token, and you will receive that in your wallet.
If you already have an existing AAVE Position on Summer.fi you can:
1. Navigate to the “Protection” tab from your Position overview.
2. From here select “Setup Stop Loss Protection” and you will be prompted to set your Stop Loss Trigger LTV Ratio.
3. Once you have successfully setup a Stop-Loss on your position the Protection tab will indicate that Protection is “On”.
At any point, you can adjust or remove your Stop-Loss by navigating back to the Protection Tab.
Feel free to reach out out support if you have any doubt.