Withdraw

Withdrawing Liquidity

Depositors can reclaim their supplied tokens—including any accrued interest—provided there is sufficient unborrowed liquidity in the underlying asset pool. The withdrawal amount depends on both the availability of the base tokens and the depositor’s active borrow status. When using periphery contracts, users can withdraw in alternative assets directly, bypassing the need for manual conversions. This streamlined approach offers flexibility for reorganizing a portfolio without excess overhead.

Collateral Considerations

If a borrower chooses to withdraw while holding a debt position, it’s crucial to maintain a healthy collateral ratio. Reducing one’s supply of collateral can lower the level of overcollateralization and edge the account closer to liquidation. To avoid forced liquidations, users should ensure that the remaining collateral remains above the protocol-defined threshold once the withdrawal is complete. Maintaining this buffer helps preserve market stability, minimizing the risk of liquidation and protecting both the borrower and the system at large.