Repayment
Last updated
Last updated
Given that CROW tokens are not subject to liquidation, users have the flexibility to repay their borrowed CROW tokens either in full or in part, whenever they choose.
The ‘Outstanding Debt’ is the sum of the number of borrowed CROW tokens and the accumulated interest. It represents the total number of CROW tokens that a user must repay to fully withdraw their WEMIX collateral.
In Kurrency PLAY, there is no mandatory holding period for WEMIX deposits, allowing users the flexibility to request the withdrawal of their WEMIX collateral whenever necessary. Users can withdraw all of their WEMIX collateral once the borrowed CROW tokens and the accrued interest have been fully repaid. Additionally, users have the option to partially withdraw their WEMIX collateral as needed.
For partial withdrawals, users are allowed to withdraw their WEMIX collateral provided that the amount of CROW tokens borrowed remains below the ‘Maximum Borrow Capacity.’ The ‘Maximum Borrow Capacity’ represents the maximum number of CROW tokens that a user can borrow against their deposited WEMIX collateral. This figure is determined by multiplying the number of WEMIX collateral by the ‘Borrow per Collateral.’ (For more information on the ‘Maximum Borrow Capacity’, please refer to the Docs)
Impact of Changes in the Maximum Borrow Capacity
When the price of WEMIX rises, the ‘Maximum Borrow Capacity’ for CROW tokens increases due to the increased ‘Borrow per Collateral. As a result, users who have already borrowed up to ‘Maximum Borrow Capacity’ have the opportunity to borrow more CROW tokens, provided they have ‘Available Liquidity’. Additionally, these users can withdraw a portion of their WEMIX collateral as required, in line with the newly adjusted ‘Borrow per Collateral’.
[Example: The number of WEMIX available for withdrawal when the ‘Borrow per Collateral’ is increased from 2 to 4 by a rise in WEMIX price]
Suppose a user deposited 2 WEMIX and borrowed the ‘Maximum Borrowing Capacity’, which is 4 CROW.
Due to the increase in ‘Borrow per Collateral’ from 2 to 4, the user would now only need to deposit 1 WEMIX to borrow 4 CROW.
As a result, a user in this scenario, having borrowed 4 CROW, is eligible to withdraw up to 1 WEMIX
[Example: The number of WEMIX available for withdrawal when the ‘Borrow per Collateral’ is decreased from 2 to 1 by a decrease in WEMIX price]
Suppose a user deposited 2 WEMIX and borrowed the ‘Maximum Borrow Capacity’, which is 4 CROW.
Due to the decrease in ‘Borrow per Collateral’ from 2 to 1, the user now needs to deposit 4 WEMIX to borrow 4 CROW.
Although the decreased ‘Maximum Borrowing Capacity’ does not force the user to immediately repay the borrowed CROW tokens, it does prevent the user from withdrawing any collateral as the ‘Available to Borrow’ is reduced to zero.
Impact of CROW token repayment
After the partial repayment of the borrowed CROW tokens, a user may withdraw some of the deposited WEMIX collateral if the number of borrowed CROW tokens becomes less than the ‘Maximum Borrow Capacity’ at the time of repayment.
However, it is important to note that the ‘Maximum Borrow Capacity’ is contingent upon the ‘Borrow per Collateral’, which fluctuates based on the WEMIX price. Therefore, there might be instances where a withdrawal is not feasible, even after repaying some CROW tokens. This means that changes in the WEMIX price, affecting the ‘Borrow per Collateral’, could prevent the withdrawal of some deposited WEMIX collateral, despite the repayment of CROW tokens.
[Example: Available WEMIX for withdrawal after repaying 50% of the borrowed CROW tokens(the ‘Borrow per Collateral’ is fixed at 2)]
Suppose a user deposited 2 WEMIX and borrowed the ‘Maximum Borrow Capacity’, which is 4 CROW.
The user decides to repay 2 CROW tokens, thereby reducing their Outstanding Debt to 2 CROW.
Since the 'Borrow per Collateral' remains unchanged, the user is then able to withdraw 50% of their deposited collateral, equating to 1 WEMIX, following the repayment of 50% of the borrowed CROW tokens.
[Example: Available WEMIX for withdrawal after repaying 50% of the borrowed CROW tokens(the ‘Borrow per Collateral’ decreased from 2 to 1)].
Suppose a user deposited 2 WEMIX and borrowed the ‘Maximum Borrow Capacity’, which is 4 CROW.
The user decides to repay 2 CROW tokens, thereby reducing their Outstanding Debt to 2 CROW.
Since the 'Borrow per Collateral' has been reduced to 1, the user is unable to withdraw any of their deposited collateral even after making the repayment.
WEMIX collateral used for borrowing is deposited and managed by WONDER Staking on WEMIX.Fi. According to WONDER Staking’s policy, the withdrawal of WEMIX collateral requires a waiting period of approximately 7 days following the user’s request. Users can expect to receive their WEMIX collateral after this 7-day period.
Please refer to the ‘Withdrawal Request History’ screen in the top menu of Kurrency PLAY for detailed information on the exact time the collateral will be available after the withdrawal request and the history of previous withdrawal requests.
Please note that there are no additional fees associated with withdrawing collateral assets other than the transaction fees.
| Before the WEMIX Price Increases | After the WEMIX Price Increases | |
|---|---|---|
| Before the WEMIX Price Decreases | After the WEMIX Price Decreases | |
|---|---|---|
| Before CROW Token Repayment | After CROW Token Repayment | |
|---|---|---|
| Before Repayment | After Repayment | |
|---|---|---|
(1) Number of CROW borrowed
4
4
(2) Number of WEMIX deposited
2
2
(3) ‘Borrow per Collateral’
2
4
(4) Required WEMIX deposit = (1)/(3)
2
1
(5) Number of WEMIX available for withdrawal = max((2)-(4),0)
0
1
(1) Number of CROW borrowed
4
4
(2) Number of WEMIX deposited
2
2
(3) ‘Borrow per Collateral’
2
1
(4) Required WEMIX deposit = (1)/(3)
2
0
(5) Number of WEMIX available for withdrawal = max((2)-(4),0)
0
0
(1) Number of CROW borrowed
4
2
(2) Number of WEMIX deposited
2
2
(3) ‘Borrow per Collateral’
2
2
(4) Required WEMIX deposit = (1)/(3)
2
1
(5) Number of WEMIX available for withdrawal = max((2)-(4),0)
0
1
(1) Number of CROW borrowed
4
2
(2) Number of WEMIX deposited
2
2
(3) ‘Borrow per Collateral’
2
1
(4) Required WEMIX deposit = (1)/(3)
2
2
(5) Number of WEMIX available for withdrawal = max((2)-(4),0)
0
0
