If the borrower's loan is past due, Lend Flare will liquidate assets first, and the LP that has been collateralized to Curve will be converted to the target asset. The liquidation fee is borne by 0.1 ETH pledged by the borrower when borrowing and the Lend Flare team. The liquidation process is done automatically and the contract is activated by the Lend Flare bot (users can also do this themselves, they will have 0.1 ETH reward). After the collateral is converted to the target asset, it is used to pay Lend Flare interest and principal. It will then be sent over to Compound in order to continue earning interest. Extra amount will be divided equally among the VeLFT holders and liquidity providers.