I spent some time looking at @TermMax
from a risk-management perspective, and one number immediately caught my attention: the 10% liquidation penalty.
For me, that figure matters because liquidation isn’t just about closing an unhealthy position. It directly affects how much value lenders and borrowers can lose when markets move quickly.
@TermMax uses MLTV and LLTV to create separation between the initial borrowing level and the point where liquidation can begin. Around that structure, there are also fixed terms, partial liquidations, vault capacity limits, market whitelists, curators, and timelocks.
But the feature I find most interesting is the physical delivery fallback. If a position cannot be fully liquidated, lenders may receive a pro-rata share of the collateral instead of simply facing an unresolved position.
That creates a trade-off I’d watch closely: stronger protection against bad debt can also transfer unwanted asset exposure to lenders.
In my strategy, I’d rather study how these controls behave during volatility than focus only on yield.
Which parameter would you stress-test first when evaluating TermMax?
#termmax @TermMax $ACE
from a risk-management perspective, and one number immediately caught my attention: the 10% liquidation penalty.
For me, that figure matters because liquidation isn’t just about closing an unhealthy position. It directly affects how much value lenders and borrowers can lose when markets move quickly.
@TermMax uses MLTV and LLTV to create separation between the initial borrowing level and the point where liquidation can begin. Around that structure, there are also fixed terms, partial liquidations, vault capacity limits, market whitelists, curators, and timelocks.
But the feature I find most interesting is the physical delivery fallback. If a position cannot be fully liquidated, lenders may receive a pro-rata share of the collateral instead of simply facing an unresolved position.
That creates a trade-off I’d watch closely: stronger protection against bad debt can also transfer unwanted asset exposure to lenders.
In my strategy, I’d rather study how these controls behave during volatility than focus only on yield.
Which parameter would you stress-test first when evaluating TermMax?
#termmax @TermMax $ACE