Withdraw

In Mutuum, the act of withdrawing refers to reclaiming one’s deposited funds—whether staked in the protocol’s P2C pools or offered in P2P arrangements—along with any accrued interest. Users hold mtTokens that represent ownership of these deposits, and returning those mtTokens to Mutuum triggers the release of the underlying assets. This process remains non-custodial: the protocol’s smart contracts facilitate withdrawals automatically, provided there is enough available liquidity to cover the request. If pool utilization is high or if a P2P loan remains partially funded, withdrawal amounts may be limited until borrowers repay or until other depositors step in.

When withdrawing collateral used to back an open borrowing position, users must first ensure their outstanding debt is sufficiently repaid or the overall Stability Factor stays above liquidation thresholds. This prevents excessive exposure that might undermine the pool’s resilience. Once conditions permit, the user can withdraw all or part of their collateral, regaining full control over the assets. Throughout the process, Mutuum’s overcollateralization and liquidation safeguards maintain a stable environment for depositors and borrowers alike, ensuring safe exits and preserving solvency across the platform’s diverse lending models.