I didn't notice I was making this assumption until I saw it contradicted in writing: that "withdraw" from a vault means getting back the exact asset I put in. TermMax's own risk documentation says that isn't guaranteed.
Here's the mechanism. A vault is denominated in one debt token, say USDC, and issues ERC-4626 shares against it. If a market the vault was exposed to has a loan that doesn't get fully liquidated, physical delivery kicks in and the underlying collateral — ETH, a PT token, whatever it was — lands in the vault instead of cash. If available liquidity is thin when you try to exit, the docs say you can wait for incoming liquidity, or burn your vault share to claim that delivered collateral directly. Either way, "withdraw" can mean something other than what you deposited.
What strikes me is where this lives. It's stated plainly on TermMax's risk page. It doesn't show up in the language most vault products use to describe themselves, including earlier @TermMax copy promising withdrawals "anytime." Disclosure and marketing are reading from different scripts.
The risk didn't disappear when the vault absorbed it. It moved to whoever assumed their exit would be denominated in the asset they see on the deposit screen.
Is a stablecoin vault that can hand you collateral instead still a stablecoin vault, or a different product wearing the same label?
#termmax $ETH $USDC
Here's the mechanism. A vault is denominated in one debt token, say USDC, and issues ERC-4626 shares against it. If a market the vault was exposed to has a loan that doesn't get fully liquidated, physical delivery kicks in and the underlying collateral — ETH, a PT token, whatever it was — lands in the vault instead of cash. If available liquidity is thin when you try to exit, the docs say you can wait for incoming liquidity, or burn your vault share to claim that delivered collateral directly. Either way, "withdraw" can mean something other than what you deposited.
What strikes me is where this lives. It's stated plainly on TermMax's risk page. It doesn't show up in the language most vault products use to describe themselves, including earlier @TermMax copy promising withdrawals "anytime." Disclosure and marketing are reading from different scripts.
The risk didn't disappear when the vault absorbed it. It moved to whoever assumed their exit would be denominated in the asset they see on the deposit screen.
Is a stablecoin vault that can hand you collateral instead still a stablecoin vault, or a different product wearing the same label?
#termmax $ETH $USDC
