Repay Loans
Repayment reduces debt shares, improves health, and is the cleanest path back to free collateral movement.
Overview
Repaying reduces the liability side of the account without changing LP exposure. That means every successful repayment immediately improves the user's remaining borrowing headroom.
Even partial repayments can meaningfully reduce liquidation risk when the account is moving closer to the boundary.
Repay Process
1. Choose an amount: repay a partial amount to restore room or the full balance to exit the debt side entirely.
2. Submit the debt asset: the repayment is routed back through the Borrow Spoke and settled against the outstanding liability.
3. Recompute health:once debt shares are reduced, the account's health factor and remaining capacity update automatically.
Technical Details
Repayment is fundamentally a debt-share reduction. Whether a user repays by specifying an asset amount or, where supported, a share amount, the protocol resolves the payment into lower outstanding debt.
The Borrow Spoke updates local debt state and settles the repayment against Hub-side liquidity accounting so the shared monetary layer and the LP-collateral layer stay in sync.
When Repayment Is Urgent
If the account is approaching liquidation eligibility, repayment is one of the fastest ways to restore safety because it directly lowers debt without depending on new collateral admission or market recovery.
Once the liquidation boundary is crossed, the root Liquidation Framework becomes the canonical process.
Full Repayment
Once debt is reduced to zero, the account no longer needs collateral to secure a live borrow. At that point the associated LP positions can be released back into normal user control through the collateral-withdrawal path.
Depending on the collateral implementation, the final release may happen automatically or through an explicit follow-up action. See Withdraw Collateral for the canonical release flow.