Managing Your Position
Once a position is open, you can change it at any time. Every change is a transaction you sign.
What you can do
| Action | What it does | Limits |
|---|---|---|
| Borrow more | Draws more USDC against the same collateral | Up to 50% LTV, and subject to pool availability |
| Add collateral | Deposits more tokens, lowering your LTV | New tokens join the pool at the next cycle |
| Repay | Sends USDC back, lowering your loan | Any amount; Max repays the exact balance |
| Withdraw collateral | Returns tokens to your wallet | Only between cycles, after the tokens have been through one cycle and are back in the pool, and only while what remains is within 50% LTV |
| Close | Repay everything and withdraw everything | Withdrawing all collateral with no loan closes the position automatically |
The Auto buyback setting
Auto buyback is the app's name for partial liquidation, and it is on by default. With it on, a liquidation sells only enough to bring your LTV back to about 50% and your position stays open. With it off, a liquidation sells the whole position and sends you what is left after the loan and penalty. Change it in the position's settings. See Liquidation.
Position states
| State | What it means | What you can do |
|---|---|---|
| Active | Normal | Everything, within the limits above |
| Liquidating | Your LTV passed the threshold and a sale is in progress | Wait until it settles |
| Called away | Calls on your asset were exercised and the pool is being settled | Wait until it settles |
| Awaiting settlement | Spout is buying back the called shares in its brokerage account | Wait until it settles |
Good habits
- Keep your LTV in the safe zone, below 35%.
- Add collateral or repay early if the stock falls; it costs nothing to be cautious.
- Remember that liquidations run during US market hours, so a fall over a weekend can be acted on at Monday's open.