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If the value of Bitcoin collateral falls while the debt stays the same, the position becomes less collateralized and may cross the lending protocol’s liquidation threshold. Liquidation can use some collateral to repay debt, leaving the borrower with less BTC. The exact trigger and outcome depend on the specific Sui market; Hashi’s available materials do not publish live BTC-specific liquidation terms.

Why a falling BTC price can put a position at risk

A collateralized position has both collateral value and outstanding debt. When BTC is the collateral and its price drops, the collateral is worth less relative to the debt, even if the borrower has not borrowed more. The debt-to-collateral ratio therefore worsens.

Lending protocols set their own risk limits. A position may become eligible for liquidation when it reaches the market’s defined threshold. “Liquidation Price” and “Minimum Collateral Ratio” are protocol-specific terms, not universal Sui values: their meaning and calculation depend on the assets and rules of the market.

What is—and is not—known about Hashi

Hashi’s feature page says, “Smart contracts govern collateral parameters, LTV ratios, and liquidation logic–all defined in code.” But the available page does not state a live BTC-specific liquidation threshold, penalty, liquidation size, oracle details, or what recourse a borrower has. Those terms cannot be inferred from the general description. Hashi feature page on Sui

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Availability also needs a date qualification. In an article published September 2, 2026, Sui described Hashi as still being built and not yet shipped, while naming AlphaLend, Navi, Scallop, and Suilend as prospective integrations. That article does not establish their current status. Sui’s September 2, 2026 article

Liquidation rules vary across Sui markets

Other Sui protocols can illustrate the possible mechanics, but their rules should not be treated as Hashi rules.

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Suilend example: BTC debt backed by USDC

Suilend documentation describes an example in which third-party liquidators repay 20% of eligible loans and receive an additional 5% bounty on the amount liquidated. The example concerns BTC as the borrowed asset and USDC as collateral—not BTC collateral—and the documentation does not state a year for those figures. They are an example of one market’s mechanics, not an ecosystem-wide statistic or a Hashi parameter. Suilend says account balances are calculated using Pyth or Switchboard oracles. Suilend documentation

Bucket terminology example: SUI collateral

Bucket Protocol’s guide defines a minimum collateral ratio (MCR), says a position is liquidatable below its MCR, and provides a liquidation-price formula. Its displayed example uses SUI collateral and an oracle price. It helps explain the terminology, but its asset parameters do not establish a BTC threshold or Hashi rule. Bucket Protocol guide

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What to check before opening a BTC-backed position

Do not rely on a generic “Sui liquidation price.” Check the documentation and live interface for the specific market and confirm:

  • Which asset is collateral and which asset is borrowed.
  • The initial loan-to-value ratio and the liquidation threshold.
  • The oracle source and how often its prices update.
  • Whether liquidation can be partial or full, who executes it, and any bounty, fee, or penalty.
  • How repayment affects the collateral left in the position.
  • Whether you can add collateral or repay debt before liquidation, and what actions remain available once the threshold is reached.

For Hashi in particular, the available materials do not establish these BTC-specific terms or user recourse. Verify them in current official documentation and the actual market interface before depositing BTC or borrowing against it. Hashi documentation

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