Term Finance v1
  • Introduction to Term Finance
  • Protocol
    • Term Repos
      • Key terms
      • Margin maintenance
      • Maturity
      • Collapse position
      • Defaults
        • Liquidation
        • Liquidation protection
      • Terminology
      • Conventions
      • Rollovers
    • Term Auctions
      • Auction characteristics
      • Auction timeline
      • Complete Auction
        • Clearing rate
        • Assignment
        • Settlement
      • Terminology
    • Term Repo Tokens
      • Key metadata
      • Valuation
    • Fees and Penalties
      • Servicing Fee
      • Liquidated Damages
    • Risk Disclosures
      • Term Repo Risks
      • Smart Contract Risk
      • Digital Asset Risk
      • Ethereum Network Risk
    • FAQ
  • PERIPHERY
    • Blue Sheets (Simple-Earn)
      • Security Audits
      • GitHub Repo
      • FAQ
  • Developers
    • Developer Docs
    • Security Audits
  • Legal
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  1. Protocol

Term Repo Tokens

Term repo tokens are composable ERC-20 tokens that represent a claim to payment on a specific maturity date from a specific Term Repo.

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Last updated 1 year ago

A unique feature of Term Repo transactions is that lenders receive ERC-20 tokens known as Term Repo Tokens in an amount equal to the due to them on the . These repo tokens represent a claim against the Term Repo and are normalized to convert 1:1 with the underlying at maturity when burned.

The amount of repo tokens received by each lender is a function of the and amount of successfully tendered in auction. The exact formula can be found in the section.

While lenders are not allowed to redeem prior to the repurchase date, they are free to find willing buyers of their Term Repo Tokens if they find themselves in need of liquidity.

To the extent there are insufficient purchase tokens to cover the aggregate owed across all borrowers party to a Term Repo, the redemption rate of the Term Repo's corresponding Term Repo Tokens will be subject to a haircut applied equally across all lenders.

Conventions
clearing rate
repurchase price
repurchase date
purchase token
purchase tokens
repurchase price