Repayment
You can repay your $DONE anytime to unlock and withdraw your collateral, giving you full flexibility and control over your assets.
Partial Collateral Withdrawal: To withdraw a portion of your collateral, you must make a proportional repayment of your $DONE debt. This will release the corresponding amount of collateral for withdrawal.
Full Collateral Withdrawal: To fully withdraw your collateral, you need to repay your entire $DONE debt. Once repaid, all of your collateral will be unlocked and returned to you.
Improving Position Health Factor: If your position’s health factor nears or falls below the critical threshold (e.g., 125% for liquidation), consider making a partial repayment of your $DONE debt. Doing so will raise your health factor, reducing the risk of liquidation.
For example, a user needs to repay 1,000 $DONE to unlock their collateral.
The protocol charges a 1% protocol fee and a 4% annual borrow interest rate, prorated based on the number of days the position was open.
To fully unlock their position and withdraw their collateral, the user must repay 1,000 + 1% + Y, where Y is calculated based on the time the position was actively used.
Calculation:
Let’s assume the user borrowed 1,000 $DONE for 150 days.
The annual borrow interest rate is 4%, so the interest for 150 days is: 4 × (150 / 365) = 1.644%
Total repayment: 1,000 + 1% (10 $DONE) + 1.644% (16.44 $DONE) = 1,026.44 $DONE
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