# Repayment and Redemption ## Repayment When users open a Position[ ](/how-agilely-works/vaults-and-collateral.md)and borrow USDA tokens, they have the option to make partial or full repayments of their debt. However, it is essential to ensure that the resulting debt balance after partial repayment does not fall below **300 USDA**. Successful repayment will trigger an immediate burn of the repaid USDA tokens through a fully decentralized smart contract. This process not only enhances the Position's collateral ratio but also increases the available collateral for withdrawal. ## Redemption USDA holders within Agilely have the flexibility to redeem 1 USDA for the equivalent of 1 USD in underlying collateral at any time. This decentralized process empowers users to conveniently tap into the true value of their assets. A redemption fee of (0.5% + [baseRate](/how-agilely-works/protocol-fee/base-rate.md)) is applied. Redemptions constitute an entirely distinct mechanism accessible to all USD holders, regardless of whether they have engaged in borrowing on the platform. The redemption process involves reducing the collateral vault associated with the lowest Collateral Ratio (CR), and it doesn't impact your debt position. In essence, your Collateral Ratio (CR) remains unchanged, featuring the same amount of collateral and borrowing—except in scenarios where your vault has the lowest CR among all vaults, specific to the collateral type. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.agilely.io/how-agilely-works/repayment-and-redemption.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.