👈Repay
Repay a loan and close a borrowing position.
Last updated
Repay a loan and close a borrowing position.
Last updated
Users can check all their open borrowing/collateral/leverage positions in NUKEM LOANS interface > POSITIONS:
After clicking on POSITIONS the following interface is presented:
Collateral - The value of assets used as collateral.
Debt - The outstanding debt amount. This metric increases over time as the position remains open.
Daily Interest - The current daily interest paid on the debt (Compounding!).
Risk - Loan-to-Value or Debt-to-Collateral ratio. The higher this number, the riskier the position.
For example, if the debt is $1000 and collateral is $2000, the risk is 50%.
Treshold - The ratio of the Debt-to-Collateral ratio when the position becomes eligible for liquidation.
Actions
Pay - Presented if the borrowing position is open. When the user chooses this option to close the borrowing position, the debt will be paid from the user's wallet.
Sell - Presented if the borrowing position is open. When the user chooses this option to close the borrowing position, the debt will be paid from the collateral.
Reclaim - Presented if only collateral is deposited without debt. The user can withdraw collateral with this option.
When a user chooses the 'PAY' option on an open borrowing position, the following interface is presented:
In this option, the User will pay the debt directly from the wallet. If the entire debt is repaid in this way, the user will receive the full amount of initially deposited collateral. The user can choose to pay a portion of the debt (to derisk the position) or to repay the whole debt easily by clicking on the 'Max' button in the 'I will repay' window. Repaying only a portion of the debt will not return any collateral. To initiate the debt repayment procedure:
Input desired amount of assets in the 'I will repay' interface, and click on Approve (Step 1 of 2).
Metamask will pop-up with signature request. Click Sign to proceed.
Upon signing, User will be presented with another button - Repay (Step 2/2).
After clicking on it, Metamask will pop-up with repayment confirmation details. Click Confirm to finalize repayment process.
When a user chooses the 'SELL' option on an open borrowing position, the following interface is presented:
In this option, the User will pay the debt by selling a portion of deposited collateral. If the entire debt is repaid in this way, the user will receive the remaining amount of initially deposited collateral. The user can choose to pay a portion of the debt (to derisk the position) or to repay the whole debt easily by clicking on the 'Max' button in the 'I will sell' window. Repaying only a portion of the debt will not return any collateral. To initiate the debt repayment procedure:
Input desired amount of assets in the 'I will sell' interface, and click on Approve (Step 1 of 2).
Metamask will pop-up with signature request. Click Sign to proceed.
Upon signing, User will be presented with another button - Repay (Step 2/2).
After clicking on it, Metamask will pop-up with repayment confirmation details. Click Confirm to finalize repayment process.
Congrats! You successfully closed your borrowing position and dodged a nuke!
