I Accidentally Shortened My Own Yield on TermMax GT 😱

so yesterday I'm feeling like a genius. create a GT on $TERMMAX, 2x leverage on ETH, fixed rate locked at 20%. what could go wrong?

EVERYTHING.

here's what I discovered when I actually read the 8-step minting process. brace yourself:

· deposit $800, get $800 flash loan = $1600 total
· buy ETH, mint 1600 FTs
· split into Principal Part (800) and Interest Part (800)
· protocol SELLS the Interest Part for XT to repay the loan

wait... THEY sold MY future yield? without asking? 💀

imagine you're running a lemonade stand. you borrow money to buy more lemons. but instead of keeping the extra profits, someone forces you to sell those future earnings RIGHT NOW. that's exactly what TermMax does to GT holders.

here's the killer: if fixed rates jump from 20% to 30%, that Interest Part becomes worth $240 instead of $160. but you already sold it. so you LOSE $80 of potential profit. you're basically short XT without even knowing it.

I tested this with a small bag. rates moved up 5%, and my effective borrowing cost skyrocketed. ETH went up, sure, but the hidden short ate my gains.

the hack? if you create a GT, immediately BUY the same amount of XT on the open market. it cancels out the forced short. you get pure leveraged ETH exposure without betting on rate direction. 🎯

TermMax GT isn't just leverage—it's a double bet. you're long ETH AND short fixed rates. know what you're actually trading.

#TermMax @TermMax $BTW