Exiting Supply/Borrow Positions Smoothly

As more unwind positions before 19 December, some markets may experience high utilisation (most supplied liquidity is borrowed). When utilisation spikes, especially near 100%, withdrawals can temporarily fail until borrowers repay or liquidations free up liquidity.

This is normal for lending markets and patience is required for a full unwinding process as borrowers repay and suppliers withdraw. While there is no admin switch to “unlock” funds, the safest approach is to start early, move in steps, and use the strategies below.

Common scenarios

• A) Supplier only (no borrow): You click Withdraw and the transaction reverts. The market may be highly utilised. Try a smaller amount, retry later, or withdraw a less-utilised asset first.

• B) Borrower exiting: You want to withdraw collateral but can’t. Repay first (full or partial) to improve your health factor, then withdraw in steps (repay some → withdraw some → repeat).

• C) Market at/near 100% utilisation: Suppliers should patiently wait for borrower repayments or liquidations. Borrowers will see rates rise, encouraging repayment. If health factor drops, liquidations can occur per protocol rules.

Don’t leave it to the final days.