# Repay

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Repaying borrowed tokens on XOXNO is a key step in managing your borrowing positions effectively. Borrowers can repay using the same tokens they borrowed, ensuring their position is brought back to safety. On XOXNO, repayment directly impacts the **collateralisation ratio**—the balance between your collateral and borrowed amounts.\
\
**By repaying your loan:**

* You **increase your collateralisation ratio**, reducing the risk of liquidation.
* You can **free up collateral**, allowing you to withdraw a portion of your deposited assets safely.

XOXNO simplifies repayment by ensuring a straightforward process, but it’s important to use the correct token type for repayment. Keeping your borrow position in check through timely repayments ensures your assets remain secure and allows for smoother management of your overall borrowing strategy.


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