The due date on a @TermMax loan is not a reminder to check later. It is the time by which a borrower must repay. If repayment is missed, the official docs say the loan is flagged for liquidation and opened to liquidators for a two-hour window.
There is a real cost attached. When debt is liquidated, TermMax applies a 10% penalty to the liquidated debt value: 5% goes to the liquidator and 5% to the protocol reserve.
That makes the borrower’s practical plan simple:
- keep the repayment asset ready;
- keep enough gas for the transaction;
- set a personal cutoff well before the official due time.
The two-hour window is not a grace period. Liquidators can act during it. A loan can also face liquidation before the due date if its loan-to-value reaches the stated threshold.
A fixed borrowing rate helps with the cost plan. It does not replace the calendar plan.
Before opening a loan, which protection would you set first: funds ready one day early, or a tested repayment transaction with a time buffer?
@TermMax #TermMax $TMX
There is a real cost attached. When debt is liquidated, TermMax applies a 10% penalty to the liquidated debt value: 5% goes to the liquidator and 5% to the protocol reserve.
That makes the borrower’s practical plan simple:
- keep the repayment asset ready;
- keep enough gas for the transaction;
- set a personal cutoff well before the official due time.
The two-hour window is not a grace period. Liquidators can act during it. A loan can also face liquidation before the due date if its loan-to-value reaches the stated threshold.
A fixed borrowing rate helps with the cost plan. It does not replace the calendar plan.
Before opening a loan, which protection would you set first: funds ready one day early, or a tested repayment transaction with a time buffer?
@TermMax #TermMax $TMX