# How to Close a Loan

To close a loan on GVNR Diamond Hands and unlock your BTC collateral, you must fully repay the UCD you borrowed.

Here’s how it works:

1. Return the full amount of UCD originally minted from your vault back into the protocol.
2. Once the UCD debt is fully repaid, the loan position is considered closed.
3. The smart contract will then release your Bitcoin, making it withdrawable to your connected wallet

If only part of the UCD is repaid, the position remains open, and the BTC collateral stays locked. No collateral is released until 100% of the debt is cleared.

This ensures that all UCD in circulation remains fully backed by Bitcoin, maintaining the integrity of the protocol and the value of UCD.


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