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

# Debt management

Debt management is a process that involves borrowing assets and issuing loans. Borrow contracts have the special ability to interact with supply contracts in order to borrow assets for issuing loans, and to liquidate the collateral for closing those loans. They are responsible for returning the funds, along with interest on loan closure, to the respective supply vault, and for freeing up any remaining collateral.


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