# Repay

In MORE, it is necessary to settle outstanding debt to close a borrowed position or avoid liquidation. Borrowers must repay using the token they initially borrowed or in some cases, an interest-bearing tokens tied to the same underlying asset can be used. In many cases, periphery contracts are available to handle repayments with alternative tokens, eliminating the need for manual swaps. This flexibility streamlines the process of adjusting or closing positions whenever necessary.

By paying back a portion—or the entirety—of the borrowed amount, users boost their collateral to debt ratio, which strengthens their overall collateralization. As this ratio climbs, the risk of liquidation declines, and borrowers are afforded the option to withdraw some of their collateral. Repayment not only safeguards supplied assets from forced liquidation but also restores a borrower’s access to the liquidity they initially locked up.


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