Repay Loans
Repay debt to improve health and regain control over your LP collateral.
Overview
Repayment returns the borrowed asset through the Borrow Spoke and reduces the account's outstanding debt, including accrued interest. The LP collateral remains deposited. With less debt against the same collateral, the account's health factor and remaining borrowing capacity increase. You can also withdraw while debt is still open if the remaining collateral still supports the outstanding debt after the withdrawal. Avana runs a health check before releasing the position.
Repay Process
1. Choose an amount
Select partial repayment to regain buffer, or repay the full balance to clear debt entirely.
2. Submit the debt asset
Approve and confirm the repayment transaction. The payment is routed through the Borrow Spoke and applied against your outstanding liability, including accrued interest.
3. Health updates
Once the repayment confirms, your health factor and remaining borrowing capacity update in the interface.
Partial vs Full Repayment
A partial repayment reduces debt without closing the loan. It increases the collateral buffer and can allow a later withdrawal or fee claim to pass the account's health checks. Full repayment clears all debt for that borrow. At that point, collateral restrictions tied to the loan are released and you can withdraw your LP through Withdraw Collateral. Interest keeps accruing on open debt until you repay. The amount shown in the interface includes accrued interest, not just the original borrow.
When Repayment Is Urgent
Repayment directly reduces the debt used in the health-factor calculation. Near the liquidation threshold, this can increase the account's buffer without relying on a recovery in collateral prices. Once health crosses the liquidation boundary, see the Liquidation Framework for what happens next.