Repay Position Debt

Introduction

You can easily repay your position's debt via the position management dashboard. By repaying a position's debt, you are reducing the amount of debt accrued to the position and thereby reducing the risk of liquidation.

Position Leverage Multiplier

Note that the repayment of debt only reduces the position's debt amount. Consequently, the position's leverage multiplier is decreased accordingly with the position's Health Factor also seeing a corresponding increase.

Leverage Strategy Explainers

Please refer to the Leverage Strategy Explainer if you would like to understand the leverage process and how Factor streamlines the management of leveraged positions.

Reduce Your Position's Debt

Leverage Fees

Factor charges a small transaction-based fee that supports the development of the Factor ecosystem. 50% of the protocol's ongoing revenue is shared with veFCTR holders to encourage greater community governance.

The schedule of fees can be viewed here.

Reduce Your Position's Debt

Step 1: Navigate to the target position

You can access your position via the Factor Discover overview. For easier access, you can also filter the page by the "My Vaults" quick filter to view your active positions.

Upon clicking the "Manage Position" button, you can then select the target position. Note that the following page displays all the positions created for a particular strategy.

Step 2: Specify amount of debt to repay

Once on the position management dashboard, you can then select the "Repay" tab to specify the amount of debt token to be repaid.

Step 3: Approve debt to be repaid

To repay your position's debt, the strategy contract will require authorization to debit the debt token from your wallet. You will be prompted to sign an approval request if further spending allowance is required by the strategy contract.

Step 4: Confirm the collateral withdrawal

With the repayment amount selected, you can execute the changes by selecting the "Repay More" button. This will require a signature via the connected wallet as Factor updates the position's configurations and executes the multi-step process on the underlying protocols.

Step 5: View new collateral amount

Once the repayment has been executed, notice that the position's key metrics have been adjusted according to the debt token that was repaid:

  • Net Value: Increases by the amount of debt repaid.

  • Debt Value: Decreases by the USD value of the debt tokens repaid.

  • Health Factor: Increase as the debt value decreases relative to collateral value (which is unchanged).

  • Liquidation Price: For this long position, the liquidation price decreases as the position's leverage decreases.

  • Leverage Multiplier: Viewable on the "Change Leverage" tab, the position's leverage decreases as the position's debt obligations are reduced.

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