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      • โšกDeposit funds
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      • ๐Ÿ”ฅLiquidate your loan
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Liquidate your loan

PreviousRepay your loanNextWithdraw funds

Last updated 9 months ago

One of the great advantages Alchemix loans bring is that there is always a way to exit your position, even if you donโ€™t have funds in your wallet to make a repayment.

The liquidate function allows you to use your deposited collateral as a source of funds to repay your debt. Alchemix loans are always overcollateralized, meaning there are always enough funds in your account to cover your debt and allow you to exit.

To liquidate the alETH loan on this account weโ€™ll open the liquidate dialog and choose the alETH from the first drop down menu. Since our deposit was made in WETH weโ€™ll accept the default WETH in the second drop down.

We want to liquidate all of the loan so letโ€™s choose โ€˜maxโ€™ in the input box.

As alETH is pegged to ETH there will be a small discrepancy in their value. To enable users to limit the effect of any slippage you can choose your preferred slippage tolerance here.

Once youโ€™re happy with the liquidation parameters press liquidate.

Now that weโ€™ve liquidated our loan, our deposit is available to withdraw so letโ€™s look at that in the next video.

If you have any support queries, please contact our team on the official

Discord channel
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