A 4.8x leverage on the arm does not mean that the commission in TermMax is calculated from the entire 4.8x position.
And this, in my opinion, is one of those details that’s easy to miss if you look only at the largest number on the screen.
In TermMax, for a position with leverage, the borrowed portion is identified first:
loan sum = deposit × (arm leverage multiplier - 1)
If the deposit is 1,000 USDC and the leverage is 4.8x, then the borrowed portion is 3,800 USDC—not 4,800 USDC for the entire position.
Then the protocol commission for the leverage is calculated from this borrowed portion.
But there’s another nuance: the commission is affected not only by the leverage size. The formula also includes the time until maturity.
So to estimate costs, I would look not just at 4.8x, but at three things right away:
- your own deposit
- the borrowed portion
- days until maturity
Sometimes the most important number in a position isn’t the biggest one.
@TermMax #TermMax
And this, in my opinion, is one of those details that’s easy to miss if you look only at the largest number on the screen.
In TermMax, for a position with leverage, the borrowed portion is identified first:
loan sum = deposit × (arm leverage multiplier - 1)
If the deposit is 1,000 USDC and the leverage is 4.8x, then the borrowed portion is 3,800 USDC—not 4,800 USDC for the entire position.
Then the protocol commission for the leverage is calculated from this borrowed portion.
But there’s another nuance: the commission is affected not only by the leverage size. The formula also includes the time until maturity.
So to estimate costs, I would look not just at 4.8x, but at three things right away:
- your own deposit
- the borrowed portion
- days until maturity
Sometimes the most important number in a position isn’t the biggest one.
@TermMax #TermMax
