> For the complete documentation index, see [llms.txt](https://promethium.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://promethium.gitbook.io/docs/promethium-features/debt-management.md).

# Debt management

The feature is in development

#### 🔹 **Leveraged Borrowing**

Leveraged borrowing is a powerful tool that allows you to amplify your borrowing power. Promethium's leveraged borrowing feature lets you borrow more than your initial deposit. Here's how it works:

* You deposit your assets into Promethium.
* Promethium uses these assets as collateral to take out a loan.
* The borrowed assets are then exchanged for the collateral currency and deposited back into Promethium.
* This process repeats, creating a loop that increases both your deposit and loan amount.

This feature can be particularly useful for leverage farming, allowing you to earn more farmed tokens due to the increased deposit and loan amount.

#### 🔹 **Liquidation Protection**

Liquidation is a risk that every borrower in the DeFi space faces. Promethium mitigates this risk with its liquidation protection feature. When your position approaches the liquidation threshold, Promethium automatically takes a flash loan and partially repays your debt, preventing liquidation. This feature provides an additional layer of security, ensuring your position remains safe even in volatile market conditions.

#### 🔹 **Discounted Liquidations**

In addition to liquidation protection, Promethium offers discounted liquidations. If your position approaches the liquidation threshold and you haven't activated the liquidation protection service, Promethium will liquidate your position but with a liquidation bonus half that of the lending protocol where your position is located. This feature reduces your liquidation losses, providing an additional safety net.

#### 🔹 **Short/Long an Asset (Simple/Leveraged/With Orders)**

Promethium allows you to open short and long positions with ease. You can choose to open a simple position, borrow an asset against another asset, or use leverage and/or stop/limit orders to enhance your trading strategy. This feature provides flexibility, allowing you to tailor your trading strategy to your specific needs and risk tolerance.

## **Conclusion**

Promethium's suite of debt management tools provides a comprehensive solution for managing your debt in the DeFi space. With features like leveraged borrowing, liquidation protection, discounted liquidations, and flexible trading strategies, Spectrum ensures that you have all the tools you need to optimize your debt management strategy.