No I can pay back the $368 any way I want.
The collateral itself also has to be taken into consideration.
I'm long on BTC and RUNE in this situation, and short on USD.
If BTC moons then I have all the incentive in the world to pay back the tiny loan amount to unlocked my mooned BTC. I'm still not sure if I can pay it back directly with the collateral... I'm about to find out after the 30 day locking period.
It looks like I might be able to borrow even more if the collateral moons and/or repay the loan with the collateral itself... but the frontend refuses to tell me until the 30 day lock period has expired.