#termmax @TermMax I once thought liquidation was the end of a bad loan. But TermMax helped me reconsider the gap between liquidation and final settlement.
If, after liquidation, there is still unresolved exposure, Physical Delivery allows FT holders to redeem their share from the redemption pool, including the corresponding portion of collateral and the debt/underlying tokens.
What’s interesting is that TermMax doesn’t turn liquidation into a promise of a “loss write-off.” If the collateral drops in value or liquidity is low, the risk remains.
So the question I find worth considering isn’t only:
“How does liquidation work?”
But rather:
“After liquidation doesn’t resolve everything, what happens next?”
With TermMax, Physical Delivery is the part I want to keep following. $XAI $KII
If, after liquidation, there is still unresolved exposure, Physical Delivery allows FT holders to redeem their share from the redemption pool, including the corresponding portion of collateral and the debt/underlying tokens.
What’s interesting is that TermMax doesn’t turn liquidation into a promise of a “loss write-off.” If the collateral drops in value or liquidity is low, the risk remains.
So the question I find worth considering isn’t only:
“How does liquidation work?”
But rather:
“After liquidation doesn’t resolve everything, what happens next?”
With TermMax, Physical Delivery is the part I want to keep following. $XAI $KII