Repay
After you borrow CUSD, your NFT position is transferred to the secure Chad Finance vault as collateral. Once you repay your loan in full, the position will be transferred back to your wallet.
Note : During repayment, interest accrued will be prioritized for repayment before any remaining amount is allocated towards the principal
Be cautious! If your current debt approaches the maximum borrowing limit, consider repaying some of your loan to avoid liquidation. Your NFT position acts as collateral for the loan, and if the debt becomes too high relative to its value, Chad Finance will be forced to sell your position to recover the funds. A warning banner will appear on the platform if your debt level gets close to the limit
When you access the repay page from the position page's borrow button, you'll see a "Max" button. This button reflects the maximum amount you can repay at that moment. Here's how it works:
If your CUSD balance is greater than your total debt: The "Max Repay" button will represent the total debt amount. This means you can repay your entire loan in one go.
If your CUSD balance is less than your total debt: The "Max Repay" button will be limited to your current CUSD balance. In this scenario, you can only repay up to the amount of CUSD available in your wallet.
In essence, the "Max Repay" button ensures you don't try to repay more than you have available.
To repay your loan:
Enter the amount you want to repay.
Grant Chad Finance permission to use the entered CUSD amount by approving the transaction.
Once approved, click the "Repay" button and confirm the transaction on your wallet.
Remember:
You can repay the entire loan amount or just a portion of it.
The maximum repayable amount will be limited to your available CUSD balance.
By following these steps, you'll successfully initiate your loan repayment on Chad Finance
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