You put money into a TermMax Dual Investment vault. The APY looks great. But when you try to cash out, you find you cannot take all your funds back.
Here is why: your money backs option deals on TermMax Alpha.
Zero borrow: No one took your funds. You can pull 100% out right away.
Partial borrow: Traders took some of it. You can only withdraw what is left sitting idle.
Full borrow: Traders took all of it. You cannot exit early at all.
When that happens, you are stuck. You have to wait for the term to end, hope new cash enters the pool, or wait for borrowers to pay it back.
High yield looks liquid until buyer demand eats up the pool. Once utilization hits top levels, you lose control of your exit time.
$ACE
$XPL
$ZEC
#USJoblessClaimsFallTo206000 #FASBProposesStablecoinsAsCashEquivalents #KOSPICloses5.9%HigherOnChipmakerBuybacks
Here is why: your money backs option deals on TermMax Alpha.
Zero borrow: No one took your funds. You can pull 100% out right away.
Partial borrow: Traders took some of it. You can only withdraw what is left sitting idle.
Full borrow: Traders took all of it. You cannot exit early at all.
When that happens, you are stuck. You have to wait for the term to end, hope new cash enters the pool, or wait for borrowers to pay it back.
High yield looks liquid until buyer demand eats up the pool. Once utilization hits top levels, you lose control of your exit time.
$ACE
$XPL
$ZEC
#USJoblessClaimsFallTo206000 #FASBProposesStablecoinsAsCashEquivalents #KOSPICloses5.9%HigherOnChipmakerBuybacks