Repaying

Repaying reduces or eliminates your outstanding debt in K2. You can repay any amount at any time. There are no penalties, lock-ups, or fixed schedules.

How It Works

1. Send the borrowed asset back to the protocol.

2. The protocol burns an equivalent amount of your debt tokens.

3. Your debt balance decreases and your health factor improves.

4. If you repay everything, your borrowing position is fully closed.

Partial vs. Full Repayment

Partial Repayment. Repay any portion of your outstanding debt without closing your position. Each repayment reduces your borrow balance and improves your health factor.

Full Repayment. Repay your entire outstanding debt, including all accrued interest, in a single transaction. To avoid leaving a residual balance caused by interest accruing between quote and execution, use the Max or Repay All option rather than entering the amount manually.

Tip: Interest accrues continuously. If you manually enter your exact debt balance, you may still owe a small amount by the time the transaction processes. Always use the Repay All option for full repayment.

Step by Step

1. Navigate to your borrow position

Find the asset you borrowed in the K2 interface. It will show your current debt balance including accrued interest.

2. Choose an amount

Enter the amount you would like to repay. Select Max to repay everything.

3. Approve and confirm

Approve K2 to access the repayment tokens, then confirm the transaction.

4. Verify

After confirmation, your debt balance should decrease and your health factor should improve.