Repaying borrowed assets is simple and flexible. You can repay at any time, in any amount, and there's no penalty for repaying early.
Why Repay?
Repaying reduces the interest you owe and frees up borrowing power and collateral. It's also the main way to reduce liquidation risk: a smaller loan means a larger safety buffer between your position and the liquidation threshold.
Steps to Repay
Go to the Markets page.
Select the borrowed asset you want to repay.
Switch to the Repay tab.
Enter the amount you want to repay.
If this is your first time repaying that asset, approve the token when prompted.
Confirm the repayment in your wallet.
Repayment Options
Partial repayment: Pay back part of your loan. This reduces your interest going forward and improves your credit remaining.
Full repayment: Pay back the entire loan plus all accrued interest. This frees up all the collateral tied to this borrow.
Interest Keeps Accruing
Interest continues to accrue on your borrowed balance every block until you fully repay. The longer you wait, the more interest you owe. When repaying in full, make sure you cover the principal plus the interest that has accrued.
Increase Your Borrowing Power
After you repay, your available borrowing power increases again, giving you more room to borrow additional assets later or to withdraw collateral.
Tips
Check your current interest rates before planning your repayment.
Repay more frequently to reduce total interest paid.
Consider repaying when your credit remaining drops, to stay clear of liquidation.
Frequently Asked Questions
Can I repay only part of my loan?
Yes. Partial repayments are allowed, in any amount, and reduce your debt and interest immediately.
Is there a fee or penalty for repaying early?
No. You only pay the network gas fee. There's no early-repayment penalty.
Do I need the exact payoff amount to fully repay?
Repay slightly more than the displayed balance, or use a "max" option if available, to cover interest that accrues up to the moment the transaction confirms.
What happens to my collateral after I repay?
Repaying frees up the collateral tied to the loan. You can then withdraw it, subject to any remaining borrows.