If you still see debt after selling assets, it likely is not because you made a mistake. It usually means the coin you sold is different from the coin you borrowed, or you used the wrong close function. On Binance Margin, closing a position and repaying a loan are separate actions. The function you choose decides whether your debt is handled automatically.
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Don't worry. Below are two common situations and how to settle them.
Case 1: You used the 'Close Position' function, but the debt is still there
This is the most common reason. The 'Close Position' function only sells your position in one coin and gives you the settlement coin you selected. It will not automatically repay other coins you borrowed. If the coin you sold is not the coin you borrowed, the debt will remain unchanged.
For example, you borrowed USDC to buy BTC. Then you clicked 'Close Position' on your BTC position and chose USDC as the settlement coin. The system will sell BTC for USDC, but your USDC loan principal will not be repaid automatically. You will just have more USDC in your wallet.
[What to do]: Use the asset in your wallet (USDC) to manually repay the matching debt (USDC).
[How to do it]:
On the margin trading page, open the 'Liability' or 'Assets' list and confirm which coin you owe.
Choose the 'Manual Repay' or 'Repay' function.
The system will ask which coin you want to use. Select the coin you hold (such as USDC in the example) and enter the amount to repay.
The system will first use the asset you selected to pay off the debt directly.
[Done when]: The debt number for that coin on the page becomes 0.
Case 2: You want to repay the debt while selling your coins
If you wanted to sell assets and clear the debt at the same time, you should have chosen a different order method from the start.
[What to do]: Sell your position and let the system automatically deduct the borrowed amount from the sale proceeds.
[How to do it]: When placing a sell order, do not use the normal 'Close Position' or 'Sell' button. In the order panel, choose the [Auto Repay] mode. After the order is filled, the system will first deduct interest, then repay the principal. The rest is your profit.
[Done when]: After the order is filled, the debt for that coin debt automatically goes to zero. No extra action is needed.
Common reason for failure: interest is paid first
Both 'Auto Repay' and manual repayment deduct unpaid interest first, then the principal. If the money in your account is enough only for interest but not enough for principal, the principal will remain. The system will not warn you. Before repaying, check that you have enough to cover the total of 'borrowed principal + interest'.
Risk warning
If you do not repay the debt, interest is charged hourly and compounded into the principal. The longer you wait, the more you owe. If your account has a negative balance after forced liquidation, amounts below 0.1 BTC equivalent may be automatically covered by the insurance fund. Larger amounts need manual review, and withdrawals may be restricted during that time.
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How to verify that repayment is complete
After clearing the debt, go to the 'Assets' page and check whether the total 'Liability' is 0. You can also go to 'Orders - Margin Orders - Repayment History' to find the repayment record and confirm that its status is 'Completed'.
