Withdraw

When you've provided liquidity to a decentralized finance protocol like Udon Finance, withdrawing assets is the action of moving your supplied tokens, along with any accrued interest, back to your personal wallet.

Be aware of a couple of crucial considerations to ensure a smooth and secure withdrawal:

Pool Liquidity Matters You can typically withdraw your assets whenever you desire, provided the liquidity pool has sufficient unborrowed assets to fulfill your request. Udon is engineered to maintain ample liquidity, but the available amount dictates withdrawal capacity — think of it as drawing from a shared reservoir: you can only draw if there's water available.

Crucial if You Have an Active Loan! If you currently have an active loan on Udon (meaning you've used your supplied assets as collateral to borrow), withdrawing can directly impact your collateral ratio and your Health Factor.

Reducing collateral lowers your Health Factor and can push you closer to the liquidation threshold. Imagine your Health Factor as a "safety gauge" — withdraw too much and that gauge can quickly drop into the danger zone.

Always Maintain a Healthy Account To mitigate unnecessary liquidation risk, ensure your account remains above the protocol's defined liquidation threshold after any withdrawal. Udon provides tools in the DApp interface to monitor your Health Factor and collateral ratio in real time. Withdrawing when you have an active loan requires careful consideration and proactive management of your borrow position to stay out of the "red zone."

Udon empowers you to control your assets smartly. Understanding how to withdraw and what to monitor will enable you to manage your decentralized finances efficiently and confidently.