Loan Repayment
How to repay your active loan (borrow) on Moonwell
Last updated
How to repay your active loan (borrow) on Moonwell
Last updated
Unlike in traditional finance, there are no fixed repayment timelines for loans on Moonwell. Borrows can be maintained indefinitely, so long as a borrower's "Credit Remaining" account balance maintains a value of above $0. Failure to meet this condition activates a liquidation process, resulting in the forfeiture of the borrower's collateral to cover the loan.
Loans taken out on Moonwell have no set repayment time or maturity date. They remain open as long as the "Credit Remaining" of the borrower's account stays above the liquidation threshold.
While there are no fixed repayment timelines, interest will continue to accrue over time. The accrued interest can negatively affect the remaining credit of the borrower's account, potentially decreasing it and putting the borrower's assets at risk of liquidation. The borrowing rate that borrowers pay is influenced by the supply and demand of the underlying asset.
Navigate to "Borrow".
Switch to "Repay" using the tabs at the top of the modal. Then, select the asset you want to repay from the asset dropdown menu.
With the "Repay" modal and preferred asset selected, enter the amount to be repaid.
Click "Repay"
Click "Confirm Repay"
Confirm the transaction in your wallet and wait for its execution. Once successful, you will have repaid the desired amount of the borrowed asset.
Navigate to "Portfolio".
Locate the "Open Positions" section and click on "Repay" for the desired asset. This will take you to the "Borrow" page.
Now on the "Borrow" page and with the "Repay" modal selected, enter the amount to be repaid.
Click "Repay"
Click "Confirm Repay"
Confirm the transaction in your wallet and wait for its execution. Once successful, you will have repaid the desired amount of the borrowed asset.
