1 FT plus 1 XT equals 1 debt token. At every moment, not just at expiry. That identity is in the @TermMax docs and almost none of the Square threads mention it. People talk about FT like it is a generic deposit receipt. It is an ERC-20: one FT redeems for one debt token at maturity, so before that date it has to trade cheaper than the 1:1 redemption. You can trade it before then, but the 1:1 redemption only happens at the end. XT is the interest piece, also an ERC-20. At maturity XT goes to zero. GT is a separate object, an ERC-721 NFT that records one specific borrow, locked collateral plus the debt that was minted. I like the split. Interest lives on its own token. You can see it. I have not seen the docs walk through how the FT/XT pair behaves in the last days before expiry, and that is the part I am still reading. FT is also the position the docs tie $TMX pre-mine accrual to, which is one more reason to know what it is before holding it.

#TermMax #DeFi