User Positions

The complete lifecycle of a borrower's position in Varla — from opening an account to liquidation mechanics.
✦ Key Takeaways
  • Cross-margin — all deposited collateral is in one account with a single health factor
  • Continuous interest — debt grows per-second via a global borrow index
  • Health factor — ratio of weighted collateral value to outstanding debt
  • Permissionless liquidation — anyone can liquidate unhealthy positions (HF < 1.0)

Position Lifecycle

Lifecycle overview
1. Open    → Deposit PM positions as collateral
2. Supply  → Add more collateral to improve health factor
3. Borrow  → Draw stablecoins against collateral
4. Manage  → Monitor health factor, add/remove collateral
5. Repay   → Pay back debt (partially or fully)
6. Withdraw → Remove collateral after repaying debt
7. Liquidate → If HF < 1.0, anyone can liquidate

Health Factor

Your health factor is the ratio of your weighted collateral value to your outstanding debt. It must stay above 1.0 to avoid liquidation.

Health factor formula
healthFactor = Σ(positionValue × liquidationThreshold) / totalDebt

Example:
├── Position A: $5,000 × 85% = $4,250
├── Position B: $3,000 × 70% = $2,100
└── Total debt: $4,000
────────────────────────────────────────
HF = $6,350 / $4,000 = 1.59 ✓ Healthy

Position Actions

Open Positions

How to deposit collateral and create a new borrowing account.

Supply Assets

Add more collateral to an existing position.

Borrow Assets

Draw stablecoins against your deposited collateral.

Withdraw Assets

Remove collateral when health factor allows.

Repay Loans

Pay back debt partially or in full to free collateral.

Liquidations

How permissionless liquidations work and the incentive structure.