Two questions apart in the same FAQ, TermMax says opposite things.
The first: buying a Gearing Token lets you benefit from higher potential yields "while the platform manages liquidation risks for you."
The very next entry: as a GT holder you're exposed to liquidation risk, and if your collateral drops significantly your position could be liquidated.
The second one is the accurate one. The protocol has a liquidation engine — LLTV thresholds, liquidators, penalties, physical delivery. That's machinery for processing liquidations in an orderly way. It isn't machinery for absorbing them on your behalf.
The first sentence is marketing language sitting inside a technical document, and someone skimming an FAQ before their first leveraged position could reasonably come away with the wrong idea about who carries the risk.
It's a small fix. It's worth making, because the FAQ is what beginners read and the mechanics pages are what they don't.
How much of what you believe about a protocol came from its FAQ rather than its mechanics?
#termmax @TermMax
The first: buying a Gearing Token lets you benefit from higher potential yields "while the platform manages liquidation risks for you."
The very next entry: as a GT holder you're exposed to liquidation risk, and if your collateral drops significantly your position could be liquidated.
The second one is the accurate one. The protocol has a liquidation engine — LLTV thresholds, liquidators, penalties, physical delivery. That's machinery for processing liquidations in an orderly way. It isn't machinery for absorbing them on your behalf.
The first sentence is marketing language sitting inside a technical document, and someone skimming an FAQ before their first leveraged position could reasonably come away with the wrong idea about who carries the risk.
It's a small fix. It's worth making, because the FAQ is what beginners read and the mechanics pages are what they don't.
How much of what you believe about a protocol came from its FAQ rather than its mechanics?
#termmax @TermMax
