#termmax I locked in a rate with an FT token, and my first feeling was—everything’s closed, safe like a bank deposit with a fixed percentage. Turns out, it’s not quite that simple🙄.
An FT token can be sold before the maturity date if you suddenly need the money earlier. And here’s the catch: if, after my entry, market rates increase, new FTs with higher yield become more attractive than mine—meaning I can sell mine early only at a discount, cheaper than the face value😎.
This isn’t related to collateral, volatility, or liquidation—it's purely the risk of the very fact that you fixed the rate right now, not later. In traditional finance, the same principle applies to bonds: the price of an already-issued bond falls when new, more favorable issues appear.
Honestly: if you hold the FT until maturity and don’t sell early—then this risk doesn’t matter at all; you’ll get exactly the rate you locked in. The problem only shows up if you exit early🤫.
Would you lock in a rate now, or would you wait, hoping for better terms? 👇
@TermMax #TermMax
An FT token can be sold before the maturity date if you suddenly need the money earlier. And here’s the catch: if, after my entry, market rates increase, new FTs with higher yield become more attractive than mine—meaning I can sell mine early only at a discount, cheaper than the face value😎.
This isn’t related to collateral, volatility, or liquidation—it's purely the risk of the very fact that you fixed the rate right now, not later. In traditional finance, the same principle applies to bonds: the price of an already-issued bond falls when new, more favorable issues appear.
Honestly: if you hold the FT until maturity and don’t sell early—then this risk doesn’t matter at all; you’ll get exactly the rate you locked in. The problem only shows up if you exit early🤫.
Would you lock in a rate now, or would you wait, hoping for better terms? 👇
@TermMax #TermMax
