#termmax @TermMax When you borrow on TermMax, your debt is recorded in a Gearing Token (GT). The debt is denominated in Fixed-Rate Tokens (FT).

Here's the thing: FT trades on the open market before maturity. And its price moves.

So your debt isn't a fixed number. It's a tradable position.
Say your GT records 1,000 USDC of debt.
You have two options:
Option A: Repay 1,000 USDC directly. Simple. Done.
Option B: Buy 1,000 FT from the market and use those to settle the debt.

If FT is trading at $0.96, buying 1,000 FT costs $960.

You just repaid $1,000 of debt for $960.

That's a 4% saving. Before fees and gas. But still.

Why does this happen? Because FT is a zero-coupon bond. It trades below face value and pulls toward $1.00 at maturity. The discount reflects time remaining and prevailing rates.

If rates rise after you borrow, FT price falls. Your debt gets cheaper to buy back.

If rates fall, FT price rises. You just repay the original amount.

So the fixed rate you locked in is actually your maximum repayment — not the exact amount.

That's the part nobody seems to talk about.

Fixed-rate borrowing isn't just predictable. It's asymmetric. You're protected if rates rise. You benefit if rates fall.

The execution isn't free. A large FT order can move the price. Gas and fees eat into the saving. But for borrowers who understand the mechanics, the edge is real.

I don't know why this isn't discussed more.

Most DeFi borrowers just repay their loans and move on. They never check whether their debt is trading at a discount in the secondary market.

The direct repayment gives you certainty. But the FT route gives you optionality.

And in a market where every basis point matters, optionality is worth understanding.