> ## Documentation Index
> Fetch the complete documentation index at: https://docs.batt.farm/llms.txt
> Use this file to discover all available pages before exploring further.

# Managing your KRW* position

> Monitor collateral, interest, redemption exposure, and repayment needs.

[한국어로 읽기](https://docs.batt.farm/manage-position.md)

After borrowing, monitor your collateral ratio, interest rate, and place in the redemption queue. Keep track of the KRW\* you need for repayment. Your position can be redeemed even when it has enough collateral.

## Collateral ratio and liquidation

Your collateral ratio is the value of your collateral in won divided by the reference value of your debt in won. If that ratio falls below the requirement for your collateral market, your position can be liquidated. batt uses the liquidated collateral to cover the debt and liquidation costs.

Your ratio can fall even if you make no changes to your position. A drop in the collateral price, a stronger won, or accrued interest can all reduce it. Adding collateral or repaying part of your debt gives you more room before liquidation.

> [accordion] Example: collateral ratio and LTV
>
> This example values 1 KRW\* at ₩1 and excludes interest and fees. These figures are not actual minimum collateral ratios or liquidation thresholds.
>
> | Measure | Calculation | ₩20 million collateral / 10 million KRW\* debt |
> | - | - | - |
> | Collateral ratio | Collateral value ÷ debt value | 200% |
> | LTV | Debt value ÷ collateral value | 50% |
>
> If collateral value falls to ₩15 million with debt unchanged, the collateral ratio becomes 150% and LTV about 66.7%. [Collateral ratio and LTV](https://docs.batt.farm/en/glossary.md#collateral-ratio-and-ltv) express the same relationship in opposite directions.
>
> Even if the collateral's dollar price stays the same, a stronger won reduces its value in won. See [Oracle design](https://docs.batt.farm/en/price-and-oracles.md) for the calculation.

## Interest rates and redemptions

A lower rate reduces your interest costs but can move your position closer to the front of the redemption queue. A higher rate can move it further back, but cannot prevent redemption.

Move the rate to compare

Borrowed amount: 10 million KRW\*Example period: 30 days

Your annual interest rate

1%Example range10%

Interest over 30 days

Simple interest · 365-day year · fixed principal and rate · fees excluded

**Example redemption order**Your position  / 5

Same collateral market · lowest rate first

Example redemption order

Rates and positions are hypothetical. They do not show actual rate limits, current borrowing activity, or the probability of redemption.

Interest over 30 days:  KRW\*. Example redemption order:  / 5.

The contract calculates your actual debt using its interest and fee rules.

Your place in the queue can change when other borrowers adjust their rates, even if you keep yours unchanged. Check the total debt in positions with lower rates than yours and the amount of debt covered by recent redemptions.

Before changing your rate, compare any interest savings with the cost of the change.

A redemption reduces both your debt and your collateral. Holding less collateral means you have less exposure to subsequent changes in its price.

> [accordion] Balances before and after a redemption
>
> This example holds collateral prices constant, values 1 KRW\* at ₩1, and excludes interest and fees.
>
> | Item | Before redemption | After a 3 million KRW\* redemption |
> | - | - | - |
> | Collateral value | ₩20 million | ₩17 million |
> | Debt | 10 million KRW\* | 7 million KRW\* |
> | Collateral ratio | 200% | About 242.9% |
> | Collateral value minus debt | ₩10 million | ₩10 million |
>
> Collateral value minus debt remains ₩10 million in this example. But the borrower now holds less collateral, so their exposure to subsequent collateral price changes is smaller.

When a KRW\* holder requests a redemption, batt exchanges collateral from lower-rate positions first. Liquidation happens when a position no longer meets its collateral requirements. [How it works](https://docs.batt.farm/en/mechanism.md) explains how redemptions help support the peg.

## Get KRW\* to repay your loan

If you swapped your borrowed KRW\* for another asset, you will need to get KRW\* again to repay. Buying it can cost more than expected if its price rises above ₩1 or trading liquidity is low.

> [accordion] Example: the cost of buying 1 million KRW\*
>
> Suppose your total debt is 1 million KRW\* and you need to buy the full amount on the market. This example assumes you can buy every token at the same price, with no trading fees or gas costs.
>
> | Price per KRW\* | Amount needed to repay | Purchase cost, expressed in won |
> | - | - | - |
> | ₩0.98 | 1 million KRW\* | ₩980,000 |
> | ₩1.00 | 1 million KRW\* | ₩1,000,000 |
> | ₩1.02 | 1 million KRW\* | ₩1,020,000 |
>
> The number of tokens owed stays the same in this example even when the market price changes. Your actual purchase cost also depends on price impact and fees, so check a swap quote for the full amount you need to repay.

If you repay only part of your loan, check that the remaining debt meets the minimum borrowing requirement. To close the loan, repay the full debt, including accrued interest and applicable costs, then recover the remaining collateral.

Before withdrawing collateral or borrowing more, check the resulting total debt, collateral ratio, and fees. See [Bad debt](https://docs.batt.farm/en/liquidation-waterfall.md) for how redistribution can transfer collateral and debt from other positions to yours.


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