📌 Introduction

When you borrow on Rain.fi, a peer-to-peer lending platform on Solana, you lock your crypto or NFTs as collateral and receive a loan in return.

Whether you use:

• Borrow → to receive the loan in your wallet
• Trade/Margin Swap → to buy another asset with leverage

You’ll eventually need to close your loan.

Rain.fi offers two main ways to do this:

1. Repay → Return the borrowed amount manually
2. Market Sell → Sell your collateral to repay automatically

Let’s break down how each option works and which one fits your needs.

🔁 Option 1: Repay the Loan

Repay means you pay back the exact loan amount plus interest using your own funds. Once repaid, your entire collateral is unlocked.

Simple Borrow — Example:

1. You borrowed 100 USDC with 200 USDC as collateral (50% LTV).
2. You repay 100 USDC + interest.
3. You recover the full 200 USDC collateral.

Trade/Margin Swap — Example:

1. You borrowed 100 USDC to buy SOL.
2. SOL went up.
3. You repay 100 USDC.

You recover your collateral and keep the profit from SOL’s price increase.

✅ Best if:

- You still hold the borrowed asset
- You want to keep your collateral
- You want full control over your exit

Option 2: Market Sell

Market Sell lets you automatically sell your collateral to repay the loan. It’s fast, simple, and useful if you don’t want to repay manually.

Simple Borrow — Example:

1. You borrowed 100 USDC, but already spent it.
2. You click Market Sell.
3. Rain.fi sells your collateral, repays the loan + interest, and returns any extra value to you.

Trade/Margin Swap — Example:

1. You borrowed 100 USDC to buy SOL.
2. SOL dropped.
3. You use Market Sell to close the position.
4. Rain.fi sells the SOL, repays the loan, and sends back any remaining funds.

✅ Best if:

- You no longer have the loaned funds
- You want to exit quickly
- You’re fine with selling the collateral

⏳ Bonus: Need More Time? Use Extend

If you’re not ready to repay or sell, Rain.fi also lets you Extend your loan. By paying the interest again, you renew the loan with the same terms.

📌 This option is especially useful if you’re waiting for a market recovery.
⚠️ Extend is only available before loan expiry.

🔑 Key Takeaways

• Repay if you want to manually close the loan and keep your collateral
• Market Sell if you need to exit fast or no longer hold the borrowed asset
• Both methods are available at any time during the loan period

⚠️ Act before the loan expires to avoid losing your collateral

❓ Want to learn how to open a loan on Rain.fi? Check out our step-by-step guides for Borrow and Trade/Margin Swap to get started.

🔗 Rain.fi Links:

Site: https://rain.fi/
Discord: https://discord.gg/rainfi
Twitter: https://twitter.com/RainFi_
FAQ : https://app.rain.fi/faq

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