📝 STEP-BY-STEP WRITTEN GUIDE:
1. Log into the platform.
Start by accessing eBTC, ensure you are logged in with the correct wallet.
2. Navigate to the Borrow tab.
Once logged in, head to the ‘Borrow’ tab or section. This is where you can open a CDP.
3. Select the relevant CDP.
Look for the CDP you wish to close. You can differentiate it from all the other positions by looking at the amount of assets borrowed / deposited or the current collateralization ratio. Each CDP also has its unique number ID.
Click on the dropdown arrow to access the CDP details.
4. Review current metrics.
Before making any changes check your current collateral ratio (labeled as “CR”) as well as the “Liquidation Price” to understand at which asset price your CDP becomes vulnerable to liquidation.
5. Decide on adjustment.
To increase your collateral ratio, you can either deposit more collateral or pay back some of the debt.
To decrease your collateral ratio, you can either withdraw some collateral or generate (borrow) more debt. However, be cautious as this makes your CDP more risky. Note that when decreasing your collateral ratio you can not go below the minimum amount of collateral of 2 stETH nor below the platform’s MCR (minimum collateral ratio).
5.1 Adjust using Deposit/Withdraw:
Navigate to the “Collateral” section of your CDP details. Here you will be able to modify the amount of collateral your CDP has. In the “Deposit” section input the amount of collateral you want to add. This will increase your collateral ratio.
If you do not wish to deposit more collateral but rather withdraw it, in the “Withdraw” section specify the amount you wish to remove. Ensure this doesn’t bring your collateral ratio down to a risky level.
5.2 Adjust by managing debt.
Rather than altering the collateral amount, you can manage your collateral ratio by adjusting your debt. Remember, your collateral ratio is influenced by both the value of the collateral you've deposited and the amount of debt you've taken on.
To pay back debt, navigate to the "Pay back" option and input the amount you wish to repay. If you run into a message that says “Payment exceeds debt” that means you are trying to pay back more than what you borrowed. If this is intended then please follow the instructions on how to close your CDP rather than adjusting it.
To borrow more against your collateral, choose the "Borrow" option. Input the desired amount and be mindful of the adjusted collateral ratio.
6. Preview changes.
After making adjustments, the platform will show you the new potential liquidation price and the adjusted collateral ratio. Ensure they are levels you’re comfortable with.
7. Confirm adjustments.
Once satisfied with the changes, click on the "Deposit", “Withdraw”, “Borrow”, or "Repay" button. Confirm the transaction in your web3 wallet and pay any associated gas fees.
8. Monitor your position.
After adjusting, continually monitor your collateral ratio, especially in volatile market conditions. Regularly check the platform and set up any alerts or notifications if available.
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Remember, always ensure you have a good understanding of the risks involved when working with CDPs. Avoid letting your collateral ratio get too close to the minimum required to prevent unexpected liquidations.
❓ If you find yourself in need of additional assistance along your eBTC journey, feel free to explore our Support Help Center or directly contact us. We're here to address any questions or concerns you may encounter within the eBTC ecosystem. Just click the chat button at the bottom right-hand corner of the screen and send our support team a message.