> For the complete documentation index, see [llms.txt](https://docs.usdd.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usdd.io/developers/core-contracts/dog.md).

# Dog

### **Purpose**

The Dog contract oversees the liquidation process. It monitors Vaults for undercollateralization and triggers auctions to sell collateral when necessary.

### Key Responsibilities

* Tracks undercollateralized Vaults.
* Incentivizes keepers to liquidate risky positions.

### Key Methods

* `bark(ilk, urn, kpr)`\
  Initiates the liquidation process for a Vault (`urn`). Determines the amount of collateral to be auctioned and distributes liquidation rewards to keepers.

  hole: Maximum debt to liquidate per collateral type.
* `digs(ilk, rad)`\
  Adjusts internal debt balances after liquidation is completed.
* `file(what, ilk, data)`\
  Configures liquidation parameters, such as penalties and incentives.
  * Example Parameters:
    * `chop`: Liquidation penalty (e.g., 5% of the debt).
    * `hole`: Maximum debt to liquidate per collateral type.