A Dual Investment Vault Can Be Unlocked — and Still Not Be Liquid
A maturity date makes it tempting to think about liquidity as a simple switch: funds are either locked until that date or available before it. TermMax’s Dual Investment design is more dynamic.
Deposits are used to underwrite Long/Short option positions. Before maturity, withdrawal depends on how much of the vault’s capital has actually been borrowed by option buyers. If none is borrowed, all can be withdrawn. If only part is used, only idle liquidity is immediately available. If all is borrowed, early withdrawal may be unavailable unless new deposits restore liquidity.
That changes how I read the yield. The premium is not merely payment for “waiting until maturity.” The LP is acting as the option seller, and once capital is deployed, immediate liquidity can disappear with utilization.
So maturity and liquidity answer different questions. Maturity tells you when the option obligation ends; utilization tells you how much can leave the vault right now.
The useful mental model is simple: an asset can be inside an unlocked period and still be temporarily illiquid.
@TermMax #TermMax $BLESS $ENA $GALA
A maturity date makes it tempting to think about liquidity as a simple switch: funds are either locked until that date or available before it. TermMax’s Dual Investment design is more dynamic.
Deposits are used to underwrite Long/Short option positions. Before maturity, withdrawal depends on how much of the vault’s capital has actually been borrowed by option buyers. If none is borrowed, all can be withdrawn. If only part is used, only idle liquidity is immediately available. If all is borrowed, early withdrawal may be unavailable unless new deposits restore liquidity.
That changes how I read the yield. The premium is not merely payment for “waiting until maturity.” The LP is acting as the option seller, and once capital is deployed, immediate liquidity can disappear with utilization.
So maturity and liquidity answer different questions. Maturity tells you when the option obligation ends; utilization tells you how much can leave the vault right now.
The useful mental model is simple: an asset can be inside an unlocked period and still be temporarily illiquid.
@TermMax #TermMax $BLESS $ENA $GALA