I borrowed against my own stock position instead of selling it, and TermMax showed me every number before I confirmed a thing.
I put up 10 NVDAon as collateral, valued at $2,203.45, on the USDT/NVDAon market.
Here's the actual math. At a 0.5 LTV, which happens to be the max allowed on this market, that collateral unlocks 1,101.1069 USDT, close to $1,100. The borrow APR is fixed at 3.50%, but once fees are factored in my effective borrow APR comes out to 4.40%, still fixed, still known upfront. No guessing what I'll owe by maturity on August 31.
Pushing LTV that close to the ceiling isn't free of risk though. My Health Factor sits at 1.4, flagged as "Caution" right in the interface, and the liquidation threshold is set at a NVDAon price of 157.529. If the price drops toward that level, my position gets liquidated. TermMax doesn't hide that number in fine print, it's right next to the borrow button.
Why go through this instead of just selling the NVDAon? Because selling means giving up upside if the price moves the way I expect. Borrowing against it keeps the position alive and still hands me USDT to redeploy elsewhere. I'm not choosing between holding and having liquidity, I get both, just with a health factor I need to watch.
What makes this workable at all is the fixed rate. A floating borrow cost on top of an already tight LTV would be a lot harder to manage. That predictability is exactly what #TermMax gets right for investors who want leverage without a second unknown variable.
@TermMax basically turned my tokenized stock into working capital, with the risk clearly priced in instead of hidden.
Would you push LTV close to max for more capital, or keep it conservative and sleep easier?
I put up 10 NVDAon as collateral, valued at $2,203.45, on the USDT/NVDAon market.
Here's the actual math. At a 0.5 LTV, which happens to be the max allowed on this market, that collateral unlocks 1,101.1069 USDT, close to $1,100. The borrow APR is fixed at 3.50%, but once fees are factored in my effective borrow APR comes out to 4.40%, still fixed, still known upfront. No guessing what I'll owe by maturity on August 31.
Pushing LTV that close to the ceiling isn't free of risk though. My Health Factor sits at 1.4, flagged as "Caution" right in the interface, and the liquidation threshold is set at a NVDAon price of 157.529. If the price drops toward that level, my position gets liquidated. TermMax doesn't hide that number in fine print, it's right next to the borrow button.
Why go through this instead of just selling the NVDAon? Because selling means giving up upside if the price moves the way I expect. Borrowing against it keeps the position alive and still hands me USDT to redeploy elsewhere. I'm not choosing between holding and having liquidity, I get both, just with a health factor I need to watch.
What makes this workable at all is the fixed rate. A floating borrow cost on top of an already tight LTV would be a lot harder to manage. That predictability is exactly what #TermMax gets right for investors who want leverage without a second unknown variable.
@TermMax basically turned my tokenized stock into working capital, with the risk clearly priced in instead of hidden.
Would you push LTV close to max for more capital, or keep it conservative and sleep easier?
