I used to think “fixed payment” meant safety.
I got a credit card, paid the minimum on time every month, and still my balance wouldn’t end. One day I realized the bank was charging heavy interest/finance charges on the full bill. I canceled the card, but interest kept running. In the end, I borrowed from somewhere else just to clear the debt — and promised never to touch one again.
That feeling — “I’m doing everything right, but the cost keeps changing” — is why fixed-rate, fixed-term borrowing matters.
On @TermMax , from day one you know:
1. Your interest rate is fixed
2. Your maturity date is fixed
3.Your financing cost is known, not a moving target
But fixed doesn’t mean “no risk.” It means “different risk.”
When things go wrong:
1.If collateral drops and LTV crosses LLTV, or you miss repayment at maturity, the loan enters liquidation.
2.The protocol sells collateral to repay the debt.
3.If liquidation is incomplete, physical delivery kicks in: the redemption pool can contain underlying tokens and collateral tokens. FT holders redeem proportionally.
So lenders get a defined fixed return when the position performs — but also tail risk: if liquidation fails, they may end up holding collateral instead of full repayment.
Fixed-rate infrastructure doesn’t remove leverage risk. It just makes one important part of that risk easier to see — and to price.
Caveat: simplified walkthrough; exact parameters vary by market.
Check current docs before opening a position.
Follow the signal, not the noise.
#TermMax @TermMax
I got a credit card, paid the minimum on time every month, and still my balance wouldn’t end. One day I realized the bank was charging heavy interest/finance charges on the full bill. I canceled the card, but interest kept running. In the end, I borrowed from somewhere else just to clear the debt — and promised never to touch one again.
That feeling — “I’m doing everything right, but the cost keeps changing” — is why fixed-rate, fixed-term borrowing matters.
On @TermMax , from day one you know:
1. Your interest rate is fixed
2. Your maturity date is fixed
3.Your financing cost is known, not a moving target
But fixed doesn’t mean “no risk.” It means “different risk.”
When things go wrong:
1.If collateral drops and LTV crosses LLTV, or you miss repayment at maturity, the loan enters liquidation.
2.The protocol sells collateral to repay the debt.
3.If liquidation is incomplete, physical delivery kicks in: the redemption pool can contain underlying tokens and collateral tokens. FT holders redeem proportionally.
So lenders get a defined fixed return when the position performs — but also tail risk: if liquidation fails, they may end up holding collateral instead of full repayment.
Fixed-rate infrastructure doesn’t remove leverage risk. It just makes one important part of that risk easier to see — and to price.
Caveat: simplified walkthrough; exact parameters vary by market.
Check current docs before opening a position.
Follow the signal, not the noise.
#TermMax @TermMax