In the @TermMax liquidation, not only a drop in collateral value can trigger it.
There’s another trigger that’s easy to underestimate— the calendar.
The loan has a fixed repayment date. If the debt isn’t paid by that moment, the position is marked for liquidation.
And here’s an important detail I found: after the missed repayment date, a two-hour liquidation window opens.
So having sufficient collateral by then doesn’t mean the deadline can simply be skipped.
For me, this changes how I view a fixed position.
Usually, attention goes to the interest rate, the collateral amount, and price movement. But in TermMax there’s another parameter that doesn’t change along with the market— time.
So before taking a loan, I would separately verify the exact repayment date and not leave it somewhere lost among other numbers.
Because you can properly assess the collateral, yet still run into a problem due to a single missed day on the calendar.
#TermMax
There’s another trigger that’s easy to underestimate— the calendar.
The loan has a fixed repayment date. If the debt isn’t paid by that moment, the position is marked for liquidation.
And here’s an important detail I found: after the missed repayment date, a two-hour liquidation window opens.
So having sufficient collateral by then doesn’t mean the deadline can simply be skipped.
For me, this changes how I view a fixed position.
Usually, attention goes to the interest rate, the collateral amount, and price movement. But in TermMax there’s another parameter that doesn’t change along with the market— time.
So before taking a loan, I would separately verify the exact repayment date and not leave it somewhere lost among other numbers.
Because you can properly assess the collateral, yet still run into a problem due to a single missed day on the calendar.
#TermMax
