Repaying Loans
To repay your loan, click the "Close" button on your active position to open the repayment modal.
There are 2 methods to repay loans: WIth $BERA, and with existing collateral. The latter option is beneficial when:
You don't have sufficient BERA in your wallet to repay the loan
You want to exit your BREAD position entirely
You prefer the simplicity of a single transaction to close your position
The current exchange rate makes it economically beneficial to convert your BREAD to BERA
Repaying with $BERA
This option allows you to repay your loan using $BERA
tokens from your wallet.

Step-by-Step Process:
Open Repayment Modal
Click the "Close" button on your active position
The repayment modal will open with "Repay Bera" tab selected by default
Verify Loan Details
At the top of the modal, you'll see your current borrowed amount and expiration date
Enter Repayment Amount
In the "Amount" field, enter how much
$BERA
you wish to repayYou can choose to repay a partial amount or the full loan
Click the "FULL" button to automatically set the repayment to the entire borrowed amount
Partial vs. Full Repayment
Partial Repayment: Reduces your loan balance but doesn't recover your collateral
Full Repayment: Completely closes your loan position and returns all collateral
Execute Repayment
Click the "Repay" button at the bottom of the modal
Confirm the transaction in your wallet
Once processed, your loan balance will update (or position will close if fully repaid)
Repaying with Existing Collateral (Flash Burn)
This option allows you to repay your loan using your locked $BREAD collateral, without needing additional $BERA.

Step-by-Step Process:
Open Repayment Modal
Click the "Close" button on your active position
Switch to the "Existing Collateral" tab in the repayment modal
Review Collateral Details
The interface displays your current collateral amount and its equivalent value in
$BERA
Understand the Flash Burn Mechanism
Your $BREAD collateral will be burned (converted to $BERA)
A burn fee (2.69%) is deducted from the conversion
The resulting $BERA is used to repay your loan
Any excess value is returned to you as $BERA
Confirm Repayment
Click the "Repay" button at the bottom of the modal
Confirm the transaction in your wallet
Once processed, your loan will be closed and any excess value sent to your wallet
Risk Warning: Failure to repay your loan by the expiration date will result in the complete loss of all your collateral. There is no grace period or appeal process. Always monitor your loan expiration dates carefully.
Flash Burn Example
// Assume BREAD/BERA = 1.10
// I own 90.90 BREAD = 100 BERA worth of BREAD
// I max borrow against it for 1 year
// Max borrow possible is 99 BERA
// Interest fee = 99 * 6.9% APR
// Thus, borrow amount = 99 BERA and bera received = 92.169 BERA
// Collateral = 100 BERA (worth of) BREAD = 90.90 BREAD
// Assume BREAD/BERA rises to 1.20, and now I want to close my position
// Option 1: close the loan normally.
// I flash borrow (elsewhere, assume for 0 cost) and pay back 99 BERA
// I receive 90.90 BREAD
// I burn the BREAD for 90.90 * 1.20 = 109.08 BERA - 2.69% burn fee
// I receive 106.145 BERA and pay back by flash borrow, I netted 106.145 - 99 BERA = 7.145 BERA
// Option 2: I call flashBurn()
// My entire BREAD collateral (90.90 BREAD) is burned
// My collateral was worth 90.90 * 1.20 = 109.08 BERA
// The fee is 109.08 * burnFee = 109.08 * 2.69% = 2.93 BERA
// Remaining collateral in BERA after fee = 109.08 - 2.934 = 106.145 BERA
// 106.145 BERA must be worth more than the borrowed amount (99 BERA) -> which it is
// I get back collateral value - borrowed - fee = 106.145 BERA - 99 BERA = 7.145 BERA
// Note this is the exact same outcome as Option 1
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