> For the complete documentation index, see [llms.txt](https://ebisu.gitbook.io/ebisu-money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ebisu.gitbook.io/ebisu-money/managing-your-ebusd-loan.md).
# Managing your ebUSD loan
## Overview
Managing your position on Ebisu is simple and fully self-directed. Users can add collateral, repay debt, borrow more, withdraw collateral, or close their Troves at any time via the Borrow page.
Maintaining a healthy position helps avoid liquidation and redemption risk. This means keeping a safe collateralization ratio (CR) and adjusting your interest rate to stay above the redemption queue.
***
## How to Manage Your Position
1. Go to the **Borrow** page.
2. Find your active position at the top of the page.
3. Click the **Manage** button to open the adjustment modal.
You’ll see multiple options:
## Option 1: **Borrow More ebUSD**
Access more liquidity. You can mint additional ebUSD if your CR remains above the minimum.
## **Option 2: Add Collateral**
Increase your position’s health or unlock capacity to borrow more ebUSD. Use this when:
* Your CR is getting low
* Markets are volatile
* You want more borrowing power
## **Option 3: Withdraw Collateral**
Free up collateral for other use. You may withdraw as long as your CR stays above the minimum threshold.
## Option 4: **Repay Debt**
Repay any portion of your ebUSD debt to improve your CR. Minimum position size is 2,000 ebUSD, so if you want to repay everything, use **Close Position** instead.
## **Option 5: Adjust Interest Rate**
Click the gear icon and slide the bar to update your fixed interest rate.
* **Lower rate** = cheaper borrowing, higher redemption risk
* **Higher rate** = safer from redemptions, but higher interest cost
{% hint style="info" %}
Note. Changing your rate within 7 days of the last adjustment (or position creation) incurs a *premature-adjustment fee* equal to 7 days of average respective market interest, added to your debt.
{% endhint %}
You can also use a **rate delegate** to automatically manage this.
## Option 6: **Close Position (Trove)**
Fully repay your debt (principal + accrued interest) and withdraw all collateral. Use this if you’re exiting the system or rebalancing into another position.
## Managing Liquidation & Redemption Risk
#### **Avoiding Liquidation**
* Keep your Collateralization Ratio (CR) well above the Minimum Collateral Ratio (MCR).
* Actively monitor collateral prices and adjust accordingly.
* Add more collateral or repay part of your ebUSD debt during periods of volatility.
#### **Avoiding Redemption**
* Set a competitive interest rate that’s high enough to avoid being at the bottom of the redemption queue.
* Use interest rate delegation to automatically adjust your rate in response to market conditions.
* Monitor the peg and redemption activity if operating at low interest rates.
Users can customize their strategy based on risk tolerance, capital efficiency goals, and preferred monitoring frequency. Refer to the illustrative user risk table for guidance.
***
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