Concepts
Withdraw
When suppliers withdraw deposited tokens they also claim accrued interest as long as there is sufficient unborrowed liquidity in the reserve.
The withdrawal amount is limited by the available underlying assets in the pool and also by each user’s collateralization ratio for their borrow position.
It is crucial to maintain a healthy collateralization ratio to avoid liquidation. Withdrawing and therefore reducing collateral can lower the health factor and increase the risk of liquidation by dropping the ratio below the liquidation threshold.
Users must stay aware of their own collateralization ratio when withdrawing to maintain healthy positions in the pool.