Manage Loans
Ongoing loan management means watching health, adjusting LP collateral carefully, and staying inside spoke-level borrowing limits.
Overview
A live Avana loan is not static. Borrowing headroom changes as LP positions move, fee balances change, markets reprice, and Hub liquidity conditions evolve. Managing a loan means treating collateral and debt as a linked position rather than as unrelated actions.
Borrowing More
You can borrow more only when the Borrow Spoke still shows unused aggregate capacity and the Hub can supply the requested asset.
Partial repayment is the opposite lever: it reduces debt immediately, improves health, and creates more room for later actions such as withdrawals or position changes.
Monitoring Health
Healthy: adjusted collateral value remains comfortably above debt, leaving room for normal market moves.
Watchlist: the account still passes checks, but the remaining buffer is thinning. This is the point to repay, add approved collateral, or reduce exposure.
Liquidatable: debt has moved too close to or beyond the allowed borrowing boundary, so the liquidation framework can take over.
For the canonical definition, use Health Factor rather than treating UI warning bands as separate protocol mechanics.
Operational Control
- Repay part of the debt to restore room
- Add more approved LP collateral to the same Borrow Spoke
- Claim accrued fees when post-claim health checks still pass
- Withdraw or resize collateral only when the remaining account stays healthy
Position Changes
Concentrated-liquidity positions may need re-ranging or replacement over time. Fungible LP positions may be resized or rotated within the supported collateral set.
The protocol does not treat these as cosmetic edits. Any change that alters LP exposure is re-evaluated through the same admission, valuation, and health checks used for deposits and borrows.
Key Constraints
- Collateral changes cannot leave debt above allowed spoke capacity
- New positions must remain inside the approved pool set
- Borrow actions still depend on Hub liquidity and caps
- At-risk accounts should use repayment or collateral addition before liquidation is triggered
Keep Liquidation Framework and Collateral Factors as the main references when making changes to a live loan.