Repay and Withdrawal

Repayment

Repaying uTokens is crucial for managing user positions. Users can repay with the same tokens they borrowed, reducing the LTV ratio, preventing liquidation, and ensuring safe collateral withdrawal.

Withdrawal

Hoenn allows users to withdraw their collateral based on their outstanding uTokens and the ability to maintain a safe LTV ratio. When withdrawing with an active mint position, keeping a healthy ratio is essential to avoid liquidation. Reducing collateral increases the liquidation risk, so users must ensure their account remains above the liquidation threshold after the withdrawal.

Users can withdraw their collateral from Hoenn at any time, with no limitations.