Overview
Refinancing allows you to extend your loan at maturity or roll to better rates mid-term.Auto-Refinance
With auto-refinance enabled, your loan automatically extends at maturity at the best available rate. See full auto-refinance details.Rate Ceiling
Protect yourself from unfavorable refinancing:Manual Refinancing
For positions without auto-refinance or when you want to change terms:1
Before Maturity
Create new borrow order with desired terms
2
When Matched
Use new loan proceeds to repay old loan
3
Result
Single position at new rate/maturity
Mid-Term Rate Improvement
If rates have dropped significantly:- Strategy
- Calculation
- Check current market rates
- Calculate savings vs. effort
- If worthwhile, create new loan and repay old
- Original: $10,000 at 10% for 6 months remaining
- New: 7% available
- Savings: $150 over 6 months
- Worth refinancing if savings > hassle
Interest Compounding
Each refinance compounds interest:Health Factor at Refinance
Refinancing affects health factor:Auto-Refinance Collateral Top-Up
If health factor is low at refinance:Failed Refinance
What happens if auto-refinance can’t execute:
Grace Period: After failed refinance, you have time to repay before liquidation. Don’t ignore notifications!
Best Practices
Set Rate Ceiling
Protect from refinancing at unexpectedly high rates
Monitor Health Factor
Ensure buffer for interest compounding
Enable Notifications
Know immediately if refinance fails
Plan Ahead
Know your strategy before maturity
Refinance vs. Repay
FAQs
Is there a fee to refinance?
Is there a fee to refinance?
Standard protocol fee (0.1% of interest). No special refinance fee.
Can I change maturity on refinance?
Can I change maturity on refinance?
With auto-refinance, maturity stays same by default. Configure custom maturity in settings.
What if rates are much higher at maturity?
What if rates are much higher at maturity?
Rate ceiling prevents refinancing above your limit. Plan for either higher rate acceptance or repayment.