Missing the due date is its own liquidation trigger.
I keep running into Square posts that only talk about LTV on @TermMax , like that is the whole risk engine. The docs list two conditions. LTV hits or exceeds the LLTV threshold, or the borrower does not repay on the maturity date. Miss the date and a two-hour liquidation window opens. Two hours. That is the detail the generic threads skip. The overdue case is written down. I had been treating maturity as a soft reminder. In the writeup it is a hard switch. I am still watching how realistic two hours is if the borrower is asleep, traveling, or the chain is ugly right when the window opens. That window is a protocol rule and it holds for every borrower, whatever the $TMX conversation looks like on a given day.
#TermMax #Liquidation
I keep running into Square posts that only talk about LTV on @TermMax , like that is the whole risk engine. The docs list two conditions. LTV hits or exceeds the LLTV threshold, or the borrower does not repay on the maturity date. Miss the date and a two-hour liquidation window opens. Two hours. That is the detail the generic threads skip. The overdue case is written down. I had been treating maturity as a soft reminder. In the writeup it is a hard switch. I am still watching how realistic two hours is if the borrower is asleep, traveling, or the chain is ugly right when the window opens. That window is a protocol rule and it holds for every borrower, whatever the $TMX conversation looks like on a given day.
#TermMax #Liquidation