A liquidation engine is needed when the value of collateral corrects causing it to be a threat for recovering the capital loaned. Now traditional assets in crypto that are used for collateral like ETH, BTC or any large cap coins would need to be liquidated at corrections of about 40% but we use LPT that have a tolerance of 75-80% in similar circumstances. Hence we preferred to have a SAFU fund than a LE. The best part is these LPT represents more than 8 billions today, that is sitting in users wallets.