Manage Loans
Track health, repay debt, claim fees, and adjust collateral while your loan is open.
Overview
An open loan changes as interest accrues and the underlying LP position's prices, inventory, and fees change. Monitoring therefore requires both the current debt and the risk-adjusted collateral value; the balances recorded when the loan opened are not enough to determine its current health. Accrued fees can count toward your collateral buffer until they are claimed. When you claim fees, that value leaves the position, which can lower health if your account is already close to the liquidation threshold.
Borrowing More
An additional borrow uses the same collateral, capacity, liquidity, and health checks as the initial borrow. It can proceed only if the account has remaining capacity and the Hub can supply the requested asset within active caps. Partial repayment frees capacity immediately. It lowers debt, improves health, and can make room for withdrawals or fee claims later.
Monitoring Health
Healthy: adjusted collateral value exceeds debt, leaving a buffer before the liquidation threshold. Watchlist: the account passes health checks but has a smaller buffer. Repayment or additional approved collateral can increase that buffer. Liquidatable: the account has crossed the liquidation threshold and is eligible for the configured liquidation process.
See Health Factor for how health is calculated.
Operational Control
- Repay part of the debt to rebuild buffer
- Add more approved LP collateral to the same Borrow Spoke
- Claim accrued fees when the account still passes post-claim health checks
- Withdraw or resize collateral only when the remaining account still stays healthy
Position Changes
A deposited LP position remains active in its pool while debt is open. Price changes, fee accrual, and inventory shifts affect the collateral value used in Avana's health calculations, even without a new transaction from the borrower. Fee claims, collateral withdrawals, and supported position changes pass through Avana while the position is held as collateral. The Borrow Spoke evaluates the resulting account health before allowing value to leave or the position to change.
Key Constraints
- Collateral changes cannot leave remaining debt above allowed spoke capacity
- New or replacement positions must stay inside the approved pool set
- Borrow actions still depend on Hub liquidity and active caps
- Repay or add collateral before health reaches liquidation territory
See Liquidation Framework and Collateral Factors when making changes to a live loan.