Repay

Borrowers in Nexus Money Market can repay their loans at any time, either partially or in full, to reduce or close their outstanding debt. Repaying a loan improves the Health Factor (HF) and, once fully repaid, allows the borrower to withdraw their collateral.

When a repayment is made, the borrowed amount is returned to the liquidity pool, making the funds available for other users to borrow. The interest accrued is also settled, ensuring that lenders continue earning yield.

Repayments can be made in two ways:

• Partial Repayment: Reduces the debt and improves the Health Factor, lowering the risk of liquidation.

• Full Repayment: Clears the debt entirely, unlocking the borrower’s collateral for withdrawal.

The amount due at repayment includes the principal plus any accumulated interest, which is calculated dynamically based on the time the loan was active and the prevailing borrow interest rate.

By repaying loans on time, users can avoid liquidation, manage risk, and regain control of their collateral while maintaining flexibility in managing their assets.