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Overview

Debt management is controlled through the Credit Facade multicall interface. The protocol supports two debt operations:
  • Increase Debt - Borrow additional funds from the pool
  • Decrease Debt - Repay borrowed funds

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Debt Management Actions

The Credit Manager uses ManageDebtAction enum internally: 
enum ManageDebtAction {
    INCREASE_DEBT,  // Borrow more funds
    DECREASE_DEBT   // Repay debt
}

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Increasing Debt

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Function Signature

function increaseDebt(uint256 amount) external;
Call this function within a multicall to borrow additional funds: 
MultiCall[] memory calls = new MultiCall[](1);

calls[0] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.increaseDebt,
        (borrowAmount)
    )
});

facade.multicall(creditAccount, calls);

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Constraints

Increasing debt has several important restrictions:
  1. Debt limits - Resulting debt must be within [minDebt, maxDebt]
  2. Same block restriction - Cannot update debt twice in the same block
  3. Forbidden tokens - Cannot increase debt if forbidden tokens are enabled
  4. Per-block limit - Total borrowed by Credit Manager in block cannot exceed limit
  5. Not during closure - Cannot increase debt when closing an account

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Complete Example

function borrowMore(
    ICreditFacadeV3 facade,
    address creditAccount,
    uint256 additionalDebt
) external {
    // Check debt limits
    (uint128 minDebt, uint128 maxDebt) = facade.debtLimits();
    ICreditManagerV3 manager = ICreditManagerV3(facade.creditManager());
    
    // Get current debt
    (uint256 currentDebt,,,,,,,) = manager.creditAccountInfo(creditAccount);
    uint256 newDebt = currentDebt + additionalDebt;
    
    require(newDebt >= minDebt && newDebt <= maxDebt, "Debt out of range");
    
    // Build multicall
    MultiCall[] memory calls = new MultiCall[](1);
    calls[0] = MultiCall({
        target: address(facade),
        callData: abi.encodeCall(
            ICreditFacadeV3Multicall.increaseDebt,
            (additionalDebt)
        )
    });
    
    facade.multicall(creditAccount, calls);
}

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Decreasing Debt

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Function Signature

function decreaseDebt(uint256 amount) external;
Repay debt through multicall. The protocol repays in this order:
  1. Quota interest and fees
  2. Base interest and fees
  3. Debt principal
MultiCall[] memory calls = new MultiCall[](1);

calls[0] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.decreaseDebt,
        (repayAmount)
    )
});

facade.multicall(creditAccount, calls);

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Full Repayment

Pass a value exceeding total debt to repay fully: 
// Repay all debt
calls[0] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.decreaseDebt,
        (type(uint256).max)
    )
});
Full repayment enables a special mode that skips collateral checks. This requires disabling all quotas first - the account must have no potential debt sources.

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Constraints

  1. Not during opening - Cannot decrease debt when opening an account
  2. Same block restriction - Cannot update debt twice in the same block
  3. Minimum debt - Resulting debt must be above minDebt or zero
  4. Quota requirement - Full repayment requires all quotas to be disabled

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Repayment with Quota Cleanup

MultiCall[] memory calls = new MultiCall[](3);

// 1. Disable WETH quota
calls[0] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.updateQuota,
        (weth, type(int96).min, 0) // min value disables quota
    )
});

// 2. Disable WBTC quota
calls[1] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.updateQuota,
        (wbtc, type(int96).min, 0)
    )
});

// 3. Fully repay debt
calls[2] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.decreaseDebt,
        (type(uint256).max)
    )
});

facade.multicall(creditAccount, calls);

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Reading Debt State

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Basic Debt Information

ICreditManagerV3 manager = ICreditManagerV3(facade.creditManager());

(
    uint256 debt,
    uint256 cumulativeIndexLastUpdate,
    uint128 cumulativeQuotaInterest,
    uint128 quotaFees,
    ,,,
) = manager.creditAccountInfo(creditAccount);

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Detailed Debt Calculation

Get comprehensive debt and collateral data: 
CollateralDebtData memory data = manager.calcDebtAndCollateral(
    creditAccount,
    CollateralCalcTask.DEBT_ONLY
);

// Detailed debt breakdown
uint256 totalDebt = data.debt;
uint256 accruedInterest = data.accruedInterest;
uint256 accruedFees = data.accruedFees;
uint256 totalDebtUSD = data.totalDebtUSD;

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Debt Management Patterns

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Leveraging Up

Borrow more and deploy to yield strategy: 
MultiCall[] memory calls = new MultiCall[](3);

// 1. Borrow more
calls[0] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.increaseDebt,
        (borrowAmount)
    )
});

// 2. Swap borrowed tokens via adapter
calls[1] = MultiCall({
    target: uniswapAdapter,
    callData: abi.encodeWithSelector(
        IUniswapV3Adapter.exactInputSingle.selector,
        swapParams
    )
});

// 3. Deposit to yield protocol via adapter
calls[2] = MultiCall({
    target: yieldAdapter,
    callData: abi.encodeWithSelector(
        IYieldAdapter.deposit.selector,
        depositAmount
    )
});

facade.multicall(creditAccount, calls);

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Deleveraging

Withdraw from positions and repay debt: 
MultiCall[] memory calls = new MultiCall[](3);

// 1. Withdraw from yield protocol
calls[0] = MultiCall({
    target: yieldAdapter,
    callData: abi.encodeWithSelector(
        IYieldAdapter.withdraw.selector,
        withdrawAmount
    )
});

// 2. Swap tokens back to underlying
calls[1] = MultiCall({
    target: uniswapAdapter,
    callData: abi.encodeWithSelector(
        IUniswapV3Adapter.exactInputSingle.selector,
        swapParams
    )
});

// 3. Repay debt
calls[2] = MultiCall({
    target: address(facade),
    callData: abi.encodeCall(
        ICreditFacadeV3Multicall.decreaseDebt,
        (repayAmount)
    )
});

facade.multicall(creditAccount, calls);

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Interest Calculation

Debt accrues interest based on:
  • Base interest - Charged on principal debt
  • Quota interest - Charged on quota-enabled collateral
  • Fees - Protocol and liquidation fees
The Credit Manager tracks cumulative indices: 
interface ICreditManagerV3 {
    function manageDebt(
        address creditAccount,
        uint256 amount,
        uint256 enabledTokensMask,
        ManageDebtAction action
    ) external returns (
        uint256 newDebt,
        uint256 tokensToEnable,
        uint256 tokensToDisable
    );
}

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Health Factor and Collateral

After debt changes, the protocol performs a collateral check: 
// Health factor = (Total Weighted Value) / (Total Debt)
// Must be >= 10000 (100%) to avoid liquidation

uint256 minHealthFactor = 10000; // 100%

bool isLiquidatable = manager.isLiquidatable(
    creditAccount,
    uint16(minHealthFactor)
);
Increasing debt or decreasing collateral reduces your health factor. Always maintain health factor above 100% to avoid liquidation.

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Error Scenarios

Common debt management errors:
  • DebtAmountOutOfRange - Debt not within [minDebt, maxDebt]
  • DebtUpdatedInSameBlock - Attempting second debt update in block
  • ForbiddenTokensEnabled - Forbidden tokens prevent debt increase
  • QuotasNotDisabled - Full repayment requires zero quotas
  • InsufficientCollateral - Health factor below minimum after operation

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Next Steps

Opening Accounts

Create credit accounts with initial debt

Working with Adapters

Use borrowed funds in DeFi protocols

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