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+---
+sccp: 2121
+network: Ethereum & Optimism
+title: Update staking liquidation parameters 
+author: Cavalier (@cavalier)
+status: Draft
+created: 2024-07-05
+type: Governance
+---
+
+<!--You can leave these HTML comments in your merged SCCP and delete the visible duplicate text guides, they will not appear and may be helpful to refer to if you edit it again. This is the suggested template for new SCCPs. Note that an SCCP number will be assigned by an editor. When opening a pull request to submit your SCCP, please use an abbreviated title in the filename, `sccp-draft_title_abbrev.md`. The title should be 44 characters or less.-->
+
+## Simple Summary
+
+<!--"If you can't explain it simply, you don't understand it well enough." Provide a simplified and layman-accessible explanation of the SCCP.-->
+
+- Reduce `liquidationPenalty` from 60% to 50%  
+- Reduce `selfLiquidationPenalty` from 50% to 40%
+- Reduce `liquidationRatio` from 160% to 150%
+
+## Abstract
+
+<!--A short (~200 word) description of the variable change proposed.-->
+
+This SCCP proposes adjustments to SNX staking liquidation parameters, reducing the ratio at which accounts are flagged for liquidation from 160% to 150%.
+
+## Motivation
+
+<!--The motivation is critical for SCCPs that want to update variables within Synthetix. It should clearly explain why the existing variable is not incentive aligned. SCCP submissions without sufficient motivation may be rejected outright.-->
+
+The system is well collateralized as a whole, and reducing the liquidation ratio increases the ability to absorb price volatility. 
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).