> For the complete documentation index, see [llms.txt](https://docs.arenas.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arenas.fi/atomica/financing-markets/repay.md).

# Repay

Repaying settles an **active financing**. There is no health factor and no forced liquidation clock — repayment is driven by the off-chain agreement — but interest keeps accruing on interest-accrual loans, so the payoff amount grows until you pay.

***

### What you owe

A financing’s debt is tracked on-chain as **obligations**, split into:

* **Principal** — the amount drawn down.
* **Interest** — accrued charges (for interest-accrual financings).
* **Other obligations** — any additional amounts defined by the market.

The live obligations are the source of truth for an exact payoff — a displayed “left to repay” figure is only an estimate between blocks.

***

### Ways to repay

```mermaid
sequenceDiagram
    participant Payer
    participant Market as Financing Market

    Payer ->> Market: 1. Approve asset token (if allowance short)
    Payer ->> Market: 2. repay (full) — or payInterest / repayPrincipal
    Market -->> Market: 3. Update obligations, route funds to pool
```

| Method                    | Effect                                                      |
| ------------------------- | ----------------------------------------------------------- |
| **Repay (full)**          | Pay off principal + interest + other obligations in one go. |
| **Pay interest**          | Clear accrued interest only.                                |
| **Repay principal**       | Reduce outstanding principal.                               |
| **Pay other obligations** | Settle any additional obligations.                          |

Repayment first requires an ERC-20 **approve** of the asset token to the market if your allowance is short.

***

### Things to know

* **Anyone can repay.** Repayment is not restricted to the borrower — any address can pay down a financing.
* **Partial repayment is allowed.** You don’t have to clear the whole loan at once.
* **Repaid funds return to the pool**, increasing the value of LP shares for suppliers.
* **No collateral liquidation.** If a loan goes unpaid, recovery runs through the **off-chain agreement**; the obligation may be **sold on a secondary market** at a discount, with proceeds refunded to the affected pool’s LPs.

See [Borrow](/atomica/financing-markets/borrow.md) for how a financing is created and [Financing Request Lifecycle](/atomica/financing-request-lifecycle.md) for the full state machine.