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How to repay the debt and withdraw the collateral?
There are 2 options on repaying the debt and withdrawing the collateral
When a user wants to close their CDP (collateralized debt position) they have to make a repayment and pay off the entire amount of the debt in USDP + Stability fee for debt period.
CDP closure can be made in two scenarios:
1. by paying off the debt and collecting the collateral back
2. by paying off the debt without the collateral withdrawal
In the 1st option paying off the debt and withdrawing the collateral occur simultaneously within one transaction. Thus, the transaction fee is paid once.
To proceed with the full repayment of the debt and the collateral withdraw:
1. Connect your Metamask or Wallet Connect first.
2. The Max button for USDP will set the amount to the Borrowed USDP + Stability fee for debt period.
3. The Max button for collateral will work out the amount of collateral you can withdraw based on your CDP parameters and current input. For complete withdrawal, press max for USDP to set full repayment first then press max for collateral value.
4. Press EXECUTE button.
The 2nd option allows a user to keep the collateral in the protocol for an unlimited period of time to be able to use it again in the future. For instance, you close your CDP by paying back with USDP so that you don't have a pending debt, but you can keep the collateral in the protocol to get back to it in the future to borrow USDP again once you need it.
This allows you not to transfer your collateral tokens back and forth to your wallet, which would save you time and multiple fees. Instead, you can keep your asset in the protocol and get back to it any time. In this case the system will show you a zero debt but your balance will reflect the amount of assets that you have put into the system as a collateral.
To proceed with a full repayment of the debt and to keep the collateral in the system to be used in the future:
1. Connect your Metamask or Wallet Connect first.
2. Push the Max button for USDP to set the amount to the Borrowed USDP + Stability fee for debt period.
3. Keep Collateral amount at zero to keep the whole collateral in the system or fill in another value you would like to keep according to your preference.
4. Press EXECUTE button.
5. The debt will be written off, but the collateral will remain in the system.
*please note repaying USDP and withdrawing the collateral work similarly across all the networks available at Unit protocol
Last modified 1mo ago
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