Claim LP Fees
Claim realized fee income while keeping LP principal active as collateral, as long as the account remains healthy afterwards.
Overview
Avana separates principal liquidity from accrued fees in its valuation model. That makes it possible to recognize fee income and, when permitted by health checks, release claimed fees without forcing a full LP unwind.
Fee claiming is therefore a collateral-aware operation, not just a convenience action.
How It Works
The protocol routes a venue-appropriate fee-collection operation for the LP position. For concentrated-liquidity positions, that may look like a collect-style call without a full principal exit. For fungible LPs, the venue's own fee-claim path is used when available.
The important protocol-level rule is consistent across LP types: claim only the fee component, keep the principal position active, and sync the resulting state back into the Borrow Spoke.
Health Checks
The Borrow Spoke checks health before and after a fee claim because fees can still be part of the recognized collateral buffer prior to withdrawal.
If removing the claimed fee value would leave the account too close to or beyond the allowed borrowing boundary, the claim path should be blocked until debt is reduced or more collateral is added.
Fee Accounting
Oracle outputs distinguish principal liquidity from accrued fees so the protocol can reason about productive collateral more accurately than a simple token balance model.
That distinction matters in liquidation too: accrued fees may be applied before principal LP liquidity needs to be unwound.
The canonical references are Price Oracles and Liquidation Framework.
Key Benefits
- LP principal can stay productive in the pool
- Earned fees can be realized without fully closing the collateral position
- The same risk engine that prices the LP also protects fee claims from over-withdrawal