If your position is approaching liquidation, then you have two options:
- 1.Add more collateral to your position, or
- 2.Repay some of all of what you've borrowed
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.
Choose the asset you want to deposit to your collateral amount and and click "Deposit". For this guide, we are using $UST.
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".
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.
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:
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."
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.
Once you have decided the amount, click the "Repay" button and then confirm the transaction in your Terra wallet.
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.