Many people seeing the “no liquidation” in DeFi as their first reaction may just think it’s marketing language. But put it into the Call/Put mechanism of @TermMax , and I think it actually corresponds to a completely different approach to risk management.
The biggest problem with traditional leveraged trading is that positions may be forcibly ended early due to short-term price fluctuations. By contrast, an options-style mode of participation places greater emphasis on confirming in advance—before the trade even begins—the costs you’re willing to pay and the maximum loss you can tolerate. For highly volatile assets, this difference is extremely important.
On the other hand, TermMax is not only for people who like to trade directions. For users who are more inclined to hold and seek returns, assets can also play a role by providing liquidity or participating in yield markets.
So I’d rather think of TermMax as an attempt at “risk stratification”: aggressive users can express a directional view, conservative users can seek yield, and different users don’t need to squeeze into the same kind of strategy.
This is closer to the structure a complete market should have than merely increasing the leverage multiplier.
@TermMax #TermMax
The biggest problem with traditional leveraged trading is that positions may be forcibly ended early due to short-term price fluctuations. By contrast, an options-style mode of participation places greater emphasis on confirming in advance—before the trade even begins—the costs you’re willing to pay and the maximum loss you can tolerate. For highly volatile assets, this difference is extremely important.
On the other hand, TermMax is not only for people who like to trade directions. For users who are more inclined to hold and seek returns, assets can also play a role by providing liquidity or participating in yield markets.
So I’d rather think of TermMax as an attempt at “risk stratification”: aggressive users can express a directional view, conservative users can seek yield, and different users don’t need to squeeze into the same kind of strategy.
This is closer to the structure a complete market should have than merely increasing the leverage multiplier.
@TermMax #TermMax