Assume that the vault corresponding to a certain LP Token has a minimum collateral ratio of 150%, a Liquidation Penalty of 10%, and a Liquidation Reward of 20%. When Alice deposits 10 LP Tokens with a total value of USD$200 and borrowed 100 H20, the collateral rate is 200%. If later, the total value of 10 LP Tokens drops to USD$150, liquidation is triggered. The total debt of the vault is 101, including 1 H2O as the Stability Fee. At this time, Bob as a third party initiates the liquidation of Alice's vault.