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Approaching Liquidation

If your position is approaching liquidation, then you have two options:
  1. 1.
    Add more collateral to your position, or
  2. 2.
    Repay some of all of what you've borrowed

How to Add Collateral

If your borrow limit exceeds the threshold limit, you are at immediate risk of liquidation. To protect your funds from getting liquidated, you can either add more collateral, or repay your borrowings.
To add more collateral, follow the steps below.

Step 1: Choose an Asset to Deposit

Choose the asset you want to deposit to your collateral amount and and click "Deposit". For this guide, we are using $UST.

Step 2: Confirm Your Deposit Amount

Enter the amount you'd like to deposit. Then click on "Deposit" and confirm the transaction in your Terra wallet. Note that you can check how the additional deposit will affect your position under "New Deposit Balance".

Step 3: Done!

Congratulations! You have now successfully added more collateral to your position. You can now check your position in the Red Bank or My Station pages.

How to Repay Your Debt

Another way to protect your capital from liquidation is to repay a portion of the amount you've borrowed.
Below is a quick step-by-step guide on how to do it:

Step 1. Click on "Repay" option

On the Red Bank page, go to My Borrowings and click on the 3 dots given beside the asset you've borrowed. Then, click on "Repay."

Step 2: Insert Your Repay Amount

Insert the amount you want to repay. Upon entering an amount, the user interface will display your New Borrow Balance. This indicates the borrow balance you will have if you continue with your transaction.

Step 3: Confirm the Transaction

Once you have decided the amount, click the "Repay" button and then confirm the transaction in your Terra wallet.

Step 4: Done!

Congratulations! You have now successfully repaid a portion of your borrowed amount. You can now check your position on Red Bank or My Station pages.