> For the complete documentation index, see [llms.txt](https://docs.kinetex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kinetex.io/flash-trade-protocol/collateral/withdraw-collateral.md).

# Withdraw collateral

<figure><img src="/files/QJRxJ0LLbnLZL3OxawU6" alt=""><figcaption><p>Collateral withdraw overview</p></figcaption></figure>

This sequence of actions demonstrates how the Flash Trade system handles the withdrawal of collateral. It includes the preparation for the withdrawal, the withdrawal itself, and the verification of the withdrawal.

<figure><img src="/files/dzfyD2KlB6RKgHnReUPc" alt=""><figcaption><p>Collateral withdraw process</p></figcaption></figure>

1. **Preparation**:
   1. `CollalteralManager` emits a `WithdrawReport` event, signaling that it is prepared for the withdrawal of collateral.
   2. The Resolver sends an unlocking transaction by calling the `reportWithdraw` method of the `CollalteralManager` contract in the receive chain to prepare a withdrawal.
   3. `CollalteralManager` increases the amount of locked collateral by the order amount. Locked collateral is the amount of collateral that is currently locked and cannot be used for other orders.
2. **Withdrawal**:
   1. The Resolver instructs the `CollateralManager` to withdraw collateral, calling method `withdraw` and providing `reportProof`.
   2. `CollateralManager` checks to make sure the amount being withdrawn does not exceed the amount of locked collateral. If it does, the withdrawal is rejected.
   3. `CollateralManager`, with the help of Light Clients, verifies the proof of the `Withdraw` event provided with `reportProof`. If the proof is falsified, the withdrawal is rejected.
   4. `CollateralManager` decreases the total amount of collateral to reflect the withdrawal and updates its own state to reflect the new total amount.
   5. `CollateralManager` emits a `Withdraw` event, signaling that the withdrawal of collateral has occurred.