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Collateral Management

A low LTV loan means a large collateral backing your loan position. This means a higher health factor and a lower risk level for that position. Such loan positions are not prone to liquiditation by light market volatility.

Loans can be partially repaid to reduce your LTV. To withdraw excessive collateral from an original low LTV loan or a partially repaid loan, follow the following steps.

  1. Navigate to the "BORROW" page where you took a loan after connecting your wallet to the Chiss dapp. Chiss Dashboard

  2. Click on "Withdraw Collateral" at the bottom of the page to free up some locked collateral into your wallet from the protocol. Chiss Borrow Page

  3. Input the amount of collateral to unlock in the Withdraw collateral modal. Collateral Withdrawal Modal

warning

The maximum collateral withdrawable is determined by the maximum LTV required for the stablecoin and the collateral type.

danger

Withdrawing the maximum collateral that can be unlocked moves your risk level to a 100% making your loan position prone to liquidation.

  1. Review the transaction summary which highlights the new risk level and collateral left.
  2. Click Withdraw USDC to complete the collateral withdrawal

Congratulations you've freed up some collateral, but increased your position risk! 😏