Withdraw Collateral
Collateral can leave the Borrow Spoke once debt is cleared or the remaining account still satisfies all health checks after the withdrawal.
Overview
Withdrawing collateral is the reverse of deposit. The protocol releases LP positions only when doing so will not leave outstanding debt undersecured.
Full debt repayment is the cleanest withdrawal path, but some collateral changes may also be possible while debt remains outstanding if the post-change account still passes the same valuation and health checks used everywhere else in the protocol.
Withdrawal Process
1. Reduce or clear debt: repay enough so the remaining account can support any collateral that stays in place.
2. Recompute borrowing capacity: the Borrow Spoke recalculates the aggregate account after removing the requested LP position or resizing it.
3. Release the LP position: if post-withdraw health is valid, the protocol returns or unlocks the collateral for normal user control.
Position Modifications
Some users will not fully exit collateral when they make changes. Instead, they may resize a fungible LP position, replace a concentrated-liquidity range, or rotate into a different approved position inside the same spoke.
Those changes are only valid if the new or remaining collateral still belongs to the approved set and the resulting account remains above the liquidation boundary.
After Withdrawal
- The LP position returns to normal user control
- The user may keep it in the underlying pool, re-range it, or exit liquidity entirely
- It can also be redeposited later through Deposit LP if the pool remains approved