> For the complete documentation index, see [llms.txt](https://udonfi-1.gitbook.io/udonfi-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://udonfi-1.gitbook.io/udonfi-docs/core-concepts/repay.md). # Repay When you've borrowed from Udon Finance, repaying your loan is the critical step that completes the lending cycle. It's not merely about settling your obligations; it's about optimizing your financial position, enhancing the security of your collateral, and ultimately regaining full control over your deposited assets. Here’s why repayment is fundamental and how Udon facilitates a seamless process: ## Boost your safety net * Every repayment you make directly contributes to increasing your collateralization ratio. Visualize this as fortifying your safety buffer. * A healthier ratio signifies that your loan position is more secure against adverse market fluctuations, thereby drastically reducing the risk of liquidation. {% hint style="info" %} By making repayments, you are actively strengthening the resilience and safety of your loan within the Udon protocol. {% endhint %} ## Reclaim your assets * As your collateralization ratio improves with each repayment, the risk associated with your loan diminishes. * This progressively grants you the ability to safely withdraw portions of your collateral — funds that were previously "locked" to secure your borrowed position. * Once your loan is fully repaid, all your collateral is completely unlocked and returned to you. ## Flexible repayment options * Udon is designed to make repayment as straightforward and intuitive as the borrowing process. * Typically, you will repay your loan using the same tokens you originally borrowed. For example, if you borrowed CHR, you would repay with CHR. * Udon offers intelligent, user-friendly mechanisms to handle these transactions, prioritizing simplicity for the user. Repaying your loan is a fundamental and empowering aspect of managing your DeFi journey with Udon. It puts you firmly in control, enabling you to strategically react to market conditions and regain access to your collateral precisely when you deem it necessary. Last updated 6 months ago Related: * Borrow: * Liquidation & Health Factor: --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://udonfi-1.gitbook.io/udonfi-docs/core-concepts/repay.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.