Repay
Repaying back your loans from connected chains
Users can easily repay their loans and accrued interest through the dApp. Loans and any accrued debt must be repaid back with the same asset that was borrowed.
Repaying a loan improves the Health Factor of a user's portfolio. Decreasing the likelihood of liquidation and/or improving the borrow eligibility. After repaying, a user can chose to withdraw the supplied assets partially or fully as long as there is no outstanding loan.
There is no fixed time to repay a loan, as long as your Health Factor remains above 1.
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Repay architecture
Repaying debt positions in a cross-chain domain is slightly different to a single chain counterpart. If the borrow transaction are on Repletes pool chain, repaying the loan functions similar to a chain isolated money market.
For cross-chain however, a user may find themselves that payments of loans vary slightly depending on the asset that was borrowed. For assets requiring bridging, for example, a user depositing excess tokens (i.e. due to slippage), the standard course of action after settling the debt is to provide the surplus as liquidity to the protocol. This is similar for assets that follow a omnichain token standard.
A user can decide in a follow-up transaction where to withdraw the surplus while accruing in the meantime interest for the supplied excess assets.
Note that withdraws can affect your Health Factor for outstanding loans.
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