Withdraw funds

Get a cash advance on your vesting block rewards

SPs need funds to pay for expenses other than pledge collateral on the network, like gas and payroll. As a result, they need a way to move FIL out of the system.

When an SP withdraws funds from the system, they are removing equity. SPs can withdraw funds such that their debt-to-equity (DTE) stays below 100%.

For example,

Borrowed Funds	Equity Value	Max Withdraw Amount
100 FIL	1000 FIL	900 FIL
500 FIL	1000 FIL	500 FIL
1000 FIL	1000 FIL	0 FIL

To maximize withdrawing funds from the system, the SP should borrow 1/2 of their equity value.

Withdrawing block rewards

Every time an SP earns a block reward, its equity value increases. Therefore, after making its weekly payment, an SP can borrow more. The SP is free to withdraw the borrowed funds, allowing them to get a cash advance on their block rewards.