Managing Your Borrow Position

How to Manage Your Trove

Users can manage or close their Trove at any time through the Aesyx app.

To avoid Liquidations or Redemptions against your Trove, it’s important to always maintain:

• A healthy Collateralization Ratio (CR)

• A competitive Interest Rate

Managing Your Trove: Step-by-Step

On the “Borrow” page, find your active Trove and click the “Manage” button on the right side.

You’ll have several options to manage your position:

Option 1: Add Collateral

You can deposit additional Collateral into your Trove at any time.

Adding Collateral strengthens your CR, making your Trove safer — and it can also allow you to borrow more $AXD if you choose.

Option 2: Withdraw Collateral

You can withdraw part of your deposited Collateral if you want to free up your Assets for other activities.

Withdrawals are allowed as long as your Trove stays above the minimum CR required by the protocol.

Option 3: Borrow More $AXD

You can borrow additional $AXD from your Trove as long as you maintain the required CR.

This allows you to tap into more liquidity without needing to redeposit Assets.

Option 4: Repay Borrowed $AXD

Repaying some of your borrowed $AXD will lower your outstanding debt and improve your CR.

Important notes:

• All active Troves must maintain at least 500 $AXD in outstanding debt.

• If you wish to fully repay your Trove and exit, you’ll need to close your Trove instead (see next option).

Option 5: Adjusting Interest Rate

Users can manually adjust their borrowing interest rate to manage cost and redemption risk. Lowering your rate reduces annual interest costs (e.g., from 11% to 3.99%), saving on fees — but it increases the risk of your trove being among the first to be redeemed during market volatility, especially if AXD trades below $1.

While this doesn't lead to liquidation, it reduces your leverage as your collateral may be used to honor redemptions. Interest rate changes are free after the 7-day cooldown period. If it's within the cooldown period, there will be a Premature Adjustment Fee.

Option 6: Close Your Trove

You can close your Trove at any time by paying back the total amount of borrowed $AXD plus any accumulated Interest.

Once your debt is fully cleared, you’ll be able to withdraw all your Collateral from the system.

To close your Trove:

• Select the “Close Trove” option in the Manage menu.

• Confirm the repayment and Collateral withdrawal in your wallet.