Withdraw

When you've provided liquidity to a decentralized finance protocol like Udon Finance, the time may come when you wish to retrieve your deposited assets. Withdrawing assets is simply the action of moving your supplied tokens, along with any accrued interest, back to your personal wallet.

However, a couple of crucial considerations are paramount to ensure a smooth and secure process:

• Pool Liquidity Matters: You can typically withdraw your assets whenever you desire, provided the liquidity pool has sufficient unborrowed assets to fulfill your request. Udon is engineered to maintain ample liquidity, but it's essential to understand that the available amount dictates withdrawal capacity. Think of it as drawing from a shared reservoir: you can only draw if there's water available.

• Crucial if You Have an Active Loan! This is where heightened caution becomes necessary. If you currently have an active loan on Udon (meaning you've used your supplied assets as collateral to borrow), withdrawing can directly impact your collateral ratio and, critically, your Health Factor.

  Reducing your collateral will consequently lower your Health Factor, pushing you closer to the liquidation threshold. Imagine your Health Factor as a "safety gauge" on a dashboard. If you withdraw too much collateral, that gauge can quickly drop into the danger zone.

• Always Maintain a Healthy Account: To ensure absolute safety and mitigate unnecessary liquidation risk, your account must always remain above the protocol's defined liquidation threshold after any withdrawal. Udon provides clear, intuitive tools within the DApp interface to help you monitor this crucial metric in real-time.

  Withdrawing when you have an active loan necessitates careful consideration and proactive management of your borrow position to stay out of the "red zone."

Udon empowers you to control your assets smartly. Understanding how to withdraw and what to monitor will enable you to manage your decentralized finances efficiently and confidently!