Withdrawing Collateral

Remove tokens from your Credit Account.

For Solidity implementation, see Withdrawing Collateral.

Why

You withdraw collateral when:

• Taking profit - Extract gains while keeping the position open

• Rebalancing - Move assets between Credit Account and wallet

• Closing positions - Extract remaining value after repaying debt

• Emergency exit - Quickly reduce exposure

Withdrawals decrease your health factor since you're removing value from the account.

What

withdrawCollateral transfers tokens from Credit Account to a specified address:

1. Token is transferred from Credit Account to to address

2. If balance goes to zero, token is auto-disabled

3. Safe pricing is triggered for the final collateral check

Safe pricing is critical to understand: when any withdrawal occurs in a multicall, the final health check uses min(mainPrice, reservePrice) for ALL collateral. This can cause withdrawals to fail even when the account looks healthy based on main prices alone.

How

import { GearboxSDK, createCreditAccountService } from '@gearbox-protocol/sdk';

const sdk = await GearboxSDK.attach({ client, marketConfigurators: [] });
const service = createCreditAccountService(sdk, 310);
const market = sdk.marketRegister.findByCreditManager(cmAddress);

// Withdraw 5,000 USDC to your wallet
const calls = [
  service.prepareWithdrawCollateral(
    usdcAddress,
    5_000n * 10n ** 6n,
    myWalletAddress,
  ),
];

await market.creditFacade.write.multicall([creditAccountAddress, calls]);

Withdraw Entire Balance

Pass max uint256 to withdraw all of a token:

const MAX_UINT256 = 2n ** 256n - 1n;

const calls = [
  service.prepareWithdrawCollateral(usdcAddress, MAX_UINT256, myWalletAddress),
];

Withdraw to Different Address

The to parameter can be any address:

const calls = [
  service.prepareWithdrawCollateral(
    usdcAddress,
    amount,
    recipientAddress, // Can be different from caller
  ),
];

Common Pattern: Repay + Withdraw

After repaying debt, withdraw remaining funds:

const MAX_UINT256 = 2n ** 256n - 1n;
const INT96_MIN = BigInt.asIntN(96, -1n * 2n ** 95n);

const calls = [
  // Zero quotas
  service.prepareUpdateQuota(wethAddress, INT96_MIN, 0n),
  // Repay all debt
  service.prepareDecreaseDebt(MAX_UINT256),
  // Withdraw remaining collateral
  service.prepareWithdrawCollateral(usdcAddress, MAX_UINT256, myWalletAddress),
  service.prepareWithdrawCollateral(wethAddress, MAX_UINT256, myWalletAddress),
];

Gotchas

Safe Pricing Can Block Withdrawals

This is the biggest surprise for developers. When you withdraw, ALL collateral is valued at min(mainPrice, reservePrice):

Regular check:  collateral valued at main price
Withdrawal:     collateral valued at min(main, reserve)

An account that looks healthy at main prices may fail the withdrawal check at safe prices.

Example:

• Main price: $100

• Reserve price: $80

• Regular health check uses $100

• Withdrawal health check uses $80

Your account might have HF 1.2 normally but only HF 0.96 under safe pricing.

Workaround: Add extra collateral buffer or reduce debt before withdrawing if you're close to the threshold.

Forbidden Tokens Block Withdrawals

If your account has forbidden tokens enabled, withdrawals are prohibited. You must disable forbidden tokens first (usually by swapping them away).

Token Auto-Disables at Zero Balance

When you withdraw the entire balance of a token:

• Non-quota tokens are auto-disabled

• Quota tokens remain enabled until quota is zeroed

This is usually what you want, but be aware if you're tracking enabled tokens.

Reserve Price May Be Zero

Some tokens have a reserve price of zero (untrusted tokens). Any withdrawal will fail if such tokens are enabled, because their value becomes zero under safe pricing.

Check the price feed configuration before withdrawing:

// If reserve price is 0, safe pricing makes this collateral worthless
const priceFeed = await priceOracle.read.priceFeedsRaw([tokenAddress, true]);

Withdrawal Doesn't Auto-Disable Quota Tokens

Unlike non-quota tokens, quota tokens remain enabled even at zero balance. You must explicitly zero the quota:

const MAX_UINT256 = 2n ** 256n - 1n;
const INT96_MIN = BigInt.asIntN(96, -1n * 2n ** 95n);

const calls = [
  // Zero quota first
  service.prepareUpdateQuota(wethAddress, INT96_MIN, 0n),
  // Then withdraw
  service.prepareWithdrawCollateral(wethAddress, MAX_UINT256, myWalletAddress),
];

Can't Withdraw Below Minimum Debt

After withdrawal, your account must still satisfy debt constraints. If withdrawal would leave you with debt between 0 and minDebt, it fails.

See Also

• Adding Collateral - The reverse operation

• Debt Management - Often combined with withdrawals

• Updating Quotas - Zero quotas before withdrawing quota tokens