Repaying closes your borrow position and returns your collateral. The mechanics differ between fixed-rate and variable-rate markets.
Fixed-rate repayment
At maturity — The standard path. You repay the exact fixed amount that was quoted when you opened the position. Your collateral is released immediately.
Before maturity — The protocol allows early repayment. However, the effective cost you pay may differ from the rate quoted at entry. The market price of the debt changes over time, so unwinding early means you close at the current market price, not the original locked rate. Depending on market conditions, this can be cheaper or more expensive than waiting.
If you do not repay by the maturity date, your position becomes eligible for liquidation.
Variable-rate repayment
There is no deadline. You can repay at any time — including partial repayments.
The amount you owe at any given moment is your original principal plus all accrued interest to date. Interest accrues continuously, so the total grows until you repay.
Partial repayments reduce your debt balance and lower your LTV immediately. This is a useful tool if your position is approaching the liquidation threshold and you want to create more buffer without fully exiting.
Step-by-step: repaying a position
Go to app.fira.money and open the Positions tab
Find the position you want to repay
Click Repay
Choose Partial or Full repayment and enter the amount
Approve the token spend (USDC or USD0 depending on market) and confirm the transaction
Once the transaction is confirmed, your debt is reduced or cleared
For a full repayment: click Withdraw Collateral to reclaim your deposited assets
Repayment comparison
Fixed-Rate | Variable-Rate | |
Deadline | Maturity date | None |
Amount due | Fixed, known at entry | Principal + accrued interest |
Early repayment | Yes — effective cost may differ | Yes, anytime |
Partial repayment | Yes | Yes |
Tips
Don't wait until the last moment on fixed-rate markets. Network congestion or gas spikes close to maturity can cause delays.
Partial repayments work well on variable-rate positions when you want to improve your LTV without fully exiting.
Check accrued interest before repaying in full on variable-rate — the amount on-screen reflects real-time interest and may be slightly higher than what you expect.
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