Last night, I spent some time looking through the market and watching how BTC was moving.
It got me thinking about something simple: when BTC starts moving fast, knowing your borrowing cost in advance can make a leveraged position easier to plan.
That’s one reason I find @TermMax interesting.
Its fixed-rate, fixed-term model gives borrowers more certainty over financing costs. But that certainty has limits.
The rate can be locked while the collateral price still moves sharply. Liquidity can change, and liquidation risk doesn’t disappear.
So I wouldn’t call fixed-rate borrowing “safe” by default.
It simply removes one source of uncertainty: the cost of capital.
The rest of the trade still needs to be managed.
#TermMax
It got me thinking about something simple: when BTC starts moving fast, knowing your borrowing cost in advance can make a leveraged position easier to plan.
That’s one reason I find @TermMax interesting.
Its fixed-rate, fixed-term model gives borrowers more certainty over financing costs. But that certainty has limits.
The rate can be locked while the collateral price still moves sharply. Liquidity can change, and liquidation risk doesn’t disappear.
So I wouldn’t call fixed-rate borrowing “safe” by default.
It simply removes one source of uncertainty: the cost of capital.
The rest of the trade still needs to be managed.
#TermMax