What happens when the collateral you’re already holding is still generating yield?
You could leave it sitting there as collateral. Or you can borrow against it and put the borrowed capital to work elsewhere.
That second route is where capital efficiency becomes more than a buzzword.
TermMax supports strategies where yield-bearing assets can remain as collateral while borrowed funds are deployed into additional investments. The same initial capital can therefore keep generating collateral yield while the borrowed funds are put to work separately.
There is an important catch, though.
The additional exposure also means an additional obligation. Borrowing adds another layer of risk alongside the potential return.
TermMax’s fixed borrowing rate gives the strategy a defined borrowing cost making it easier to compare that cost against the potential return from the borrowed capital.
The useful question here is straightforward:
Can the additional capital generate enough return to justify its cost and risk?
@TermMax #TermMax #termmax @TermMax
You could leave it sitting there as collateral. Or you can borrow against it and put the borrowed capital to work elsewhere.
That second route is where capital efficiency becomes more than a buzzword.
TermMax supports strategies where yield-bearing assets can remain as collateral while borrowed funds are deployed into additional investments. The same initial capital can therefore keep generating collateral yield while the borrowed funds are put to work separately.
There is an important catch, though.
The additional exposure also means an additional obligation. Borrowing adds another layer of risk alongside the potential return.
TermMax’s fixed borrowing rate gives the strategy a defined borrowing cost making it easier to compare that cost against the potential return from the borrowed capital.
The useful question here is straightforward:
Can the additional capital generate enough return to justify its cost and risk?
@TermMax #TermMax #termmax @TermMax