Tips for leverage users

How to avoid liquidations

As presented in ‘How is Health Factor calculated’, the Health Factor(HF) will be influenced by the value of the assets leverage users borrow. It should generally be fine unless a major market event comes where your positions could go down significantly to leading the HF to drop below the critical threshold in a matter of minutes.

To avoid liquidations, consider adding more collateral or partially repaying your debts to maintain the HF at a comfortable level when it falls into a relatively dangerous zone.

How to close a Credit Account

Before closing a Credit Account, ensure that you have repaid both the loan principal and any interest that has accrued over time

Option 1:

Swap all assets to the underlying and repay the debt

The protocol will convert all non-underlying assets to the underlying asset on DEXes and use them to repay your debt. Any remaining funds will be transferred to your personal wallet.

Set your maximum acceptable slippage in the options menu located in the top right corner, then click the "Swap and Get Tokens" button. If the price moves beyond your slippage tolerance while the transaction is being confirmed, the trade will be reverted.

Option 2:

Repay your debt and keep your assets

To close a Credit Account, use your own funds to repay the loan, resulting in a higher asset balance in your personal wallet. After the debt is fully repaid, any remaining assets in your Credit Account will be sent to your wallet. This method is only viable if your wallet has enough of the denominated asset to cover the debt.

Claim farming rewards before closing CA

The interface might not always claim your unclaimed rewards from the third-party protocols efficiently, so make sure to do so before closing your Credit Account. While these rewards technically remain, they could end up as a bonus for the next user of that Credit Account—unless you’re into playing "take $100 or double it and pass it on," which is generally not recommended.

• Claim your rewards from the third-party protocols.

• Sell them manually in the "Swap" tab if you want to ensure they are converted.

• Or simply close your Credit Account directly and skip the above steps