Home
Articles
How do I Manage Lend and Borrow Positions on Backpack?
How do I Manage Lend and Borrow Positions on Backpack?

Properly managing your borrow and lend positions is crucial to optimize returns and mitigate risks. Here’s how to keep your positions in check.

Managing Borrow Positions

  1. Repay Borrowed Assets: To reduce your liability, select the asset you want to repay from the Borrow section, enter the amount, and confirm the repayment.
  2. Add Collateral: To improve your margin level and lower the risk of liquidation, you can add more collateral to your account.

Monitor Margin Fractions:

  • Initial Margin Fraction (IMF): The minimum margin level required to open new positions.
  • Maintenance Margin Fraction (MMF): The margin level that must be maintained to avoid liquidation.

Managing Lend Positions

  1. Redeem Lent Assets: To withdraw assets from the lending pool, go to the Lend section, select the asset, and enter the amount to redeem.

    Note: If you have Auto Lend enabled, you cannot perform this action.
  1. Auto-Lend Feature: Enable Auto-Lend to maximize your yield, as it will automatically lend your available assets.

Best Practices:

  • Regularly check your positions and adjust them as needed based on market conditions.
  • Use subaccounts to manage risk and separate different strategies.

Learn more about Backpack

Exchange | Wallet | Twitter | Discord

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Backpack. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Backpack is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice.

Stay ahead.

Get the latest in crypto dropped to your email.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Terms

Backpack takes seriously its obligations to protect your personal information under the European General Data Protection Regulations and other applicable laws and regulations.

By providing Backpack with your email address, you confirm that you have read and understood the Backpack Privacy Policy and hereby consent to the collection, use, disclosure and processing of your personal information by Backpack and its affiliates.

(https://support.backpack.exchange/articles/privacy-policy)