I can lock a 5% borrowing rate on TermMax and still price the loan wrong before the USDC even reaches me.
The hidden line is the borrowing transaction fee. It is not flat. TermMax builds it from the matched borrow rate plus the GT minting reference rate, then scales that charge by days left to maturity.
The stablecoin example made this concrete for me. It uses a 6% GT minting reference rate, a 10% GT minting fee rate, and a 3% borrowing fee rate. Borrow 1,000 USDC at a matched 5% rate for 90 days and the entry fee comes out to about 1.85 FT.
That looks tiny until I start comparing larger borrows or different maturities. A longer term increases the time factor. A higher matched rate also pushes the fee upward.
So I would not compare two TermMax loans by APR alone. Before signing, I want the FT fee sitting beside the quoted rate because that is part of the price I actually pay to lock the term.
A fixed rate removes what happens to rates after I enter. It does not make entry cost disappear.
#TermMax @TermMax $ENA $TUT $NEIRO
The hidden line is the borrowing transaction fee. It is not flat. TermMax builds it from the matched borrow rate plus the GT minting reference rate, then scales that charge by days left to maturity.
The stablecoin example made this concrete for me. It uses a 6% GT minting reference rate, a 10% GT minting fee rate, and a 3% borrowing fee rate. Borrow 1,000 USDC at a matched 5% rate for 90 days and the entry fee comes out to about 1.85 FT.
That looks tiny until I start comparing larger borrows or different maturities. A longer term increases the time factor. A higher matched rate also pushes the fee upward.
So I would not compare two TermMax loans by APR alone. Before signing, I want the FT fee sitting beside the quoted rate because that is part of the price I actually pay to lock the term.
A fixed rate removes what happens to rates after I enter. It does not make entry cost disappear.
#TermMax @TermMax $ENA $TUT $NEIRO