Once you configure the minimum collateralization ratio and the asset to be received when the protection is triggered, you will need to send a transaction to allow the automation smart contracts to interact with your Vault, and to enable the feature with the selected parameters.
From this point on, Keepers (incentivized automated or human actors) start monitoring the next OSM price and your vault's parameters. If the Stop-Loss condition is met for the next price oracle update, any Keeper can execute the trigger function in the automation contracts and call the "Close Vault" action on the Vault.
These transactions are sent to a Flashbots node in order to prevent any front-running.
The flow diagram in the figure shows the sequence of events when the protection is triggered.
Figure 1: Stop-Loss protection flow chart