Repaying and Withdrawing

Repay

When a user wants to repay their debt, they simply need to specify the amount of cUSD they want to return to the protocol, which will increase their health factor.

If the stability fee is greater than 0%, the interest accrued (based on the amount of time the position has been open for) will be charged. For instance, if a user has borrowed 100 cUSD for 6 months and the stability fee is 5%, then the interest charged will be 100 * (6 / 12) * 0.05 = 2.5 cUSD.

Repay ONLY

Repay AND Withdraw

Withdraw

In order to withdraw their collateral, a user must have a healthy position (health factor > 1) after withdrawing. Note that a user can withdraw part of their collateral, or their entire collateral position, given their position's health.

Withdraw ONLY

Step-by-step guide to repaying debt and withdrawing collateral:

1. Determine how much cUSD you want to repay. For example, a user wants to repay their entire debt of 1 cUSD.

2. Based on the amount chosen in Step 1, the user can withdraw their corresponding amount of collateral. Since the user repaid his/her entire debt of 1 cUSD and has a health factor greater than 1, he/she can withdraw their initial collateral in its entirety minus fees that goes to the protocol.