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Repay or Close a DeFi lease
Repay or Close a DeFi lease

This guide will walk you through the various repayment methods, ensuring that you can manage your financial strategy with confidence

Updated over a month ago

Navigating the repayment process on the Nolus dApp is straightforward. Whether you’re looking to settle your DeFi Lease partially, in full, or take advantage of the Close Position feature, the Nolus protocol is designed to offer both flexibility and convenience. This guide will walk you through the various repayment methods, ensuring that you can manage your financial strategy with confidence, using either external assets or those already parked within your DeFi Lease position.

When it comes to settling outstanding debt on your Lease Position, Nolus offers two primary approaches. The first method involves using external assets to cover the debt, while the second allows you to leverage the assets already within your DeFi Lease position. Both options are designed to cater to different user needs, ensuring that you have the flexibility to choose the most suitable repayment method for your circumstances.


Repaying a Lease

Repaying your lease can serve various strategic purposes based on your financial goals and current market conditions. Here are some scenarios where a repayment can be advantageous:

Full Repayment for Asset Ownership
By fully repaying your lease, you gain complete ownership of all assets held within the lease position. This option is ideal if you’re looking to secure all assets without any remaining debt obligations

Partial Repayment to Lower Margin Call Risk
A partial repayment reduces your outstanding debt, thereby lowering your margin call threshold and helping you manage potential market volatility more effectively

Partial Repayment to Improve Leverage Position
By partially repaying, you can increase your equity within the lease, giving you the flexibility to adjust your leverage based on market shifts

Realizing Market Opportunities
If you anticipate an increase in asset value, repaying to gain control over the asset lets you fully capitalize on potential gains

Step-by-Step Guide to Execute a Lease Repayment

Access Your Lease Position
Open the Nolus dApp, log in, and navigate to your lease position by selecting it from your dashboard.

Initiate Repayment
On the lease position screen, locate and click the 'Repay' button at the bottom of the position

Select Your Repayment Amount
Choose between a full or partial repayment based on your objective by entering the amount you wish to repay. This will be applied toward settling your outstanding lease debt

Review Repayment Details
Carefully review the repayment amount and follow the on-screen prompts to confirm and proceed

Collect Assets (if applicable)
If you’ve completed a full repayment, click the 'Collect' button to transfer any remaining assets to your wallet, finalizing the transaction and completing the process

Closing a Lease

The Close feature on the Nolus dApp provides a straightforward way to manage your lease repayments using only the assets within your lease position. This method eliminates the need for additional external assets, enabling a more efficient repayment process directly from your parked holdings

Partial Debt Repayment

Use the Close feature to partially repay your debt by liquidating a portion of the assets in your lease position

Steps:

  • Navigate to your desired lease position.

  • Tap “Close” and select the portion of the asset you wish to liquidate

  • The remaining assets will be automatically calculated before you confirm, helping you maintain control over your strategy


Full Debt Repayment

To completely repay your debt, Nolus offers a simple way to liquidate enough assets to cover the entire outstanding debt.


Steps:

  • Locate the desired lease position and tap “Close

  • The debt can be tapped and will auto-fill the amount, making the process quick and easy.

  • Follow the on-screen instructions to review and submit the transaction.

  • Once the debt is settled, click “Collect” to transfer the asset to your wallet, finalizing the transaction.

Position Close (Full Debt with Asset Management)

If you want to fully cover your debt while managing the remaining assets, the Position Close option offers flexibility


Steps:

  • Find your lease position, tap “Close” and enter an amount that exceeds the debt.

  • Based on the amount entered, you can choose to divide the remaining balance between the leased asset and stablecoins or collect it entirely in one option.

  • This option provides greater control, letting you align your lease repayment with broader financial goals.

Each scenario within the Close feature provides a tailored approach to repayment, allowing you to seamlessly manage your debt while strategically aligning your lease position with your financial objectives

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