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
    • Terms of Use
    • Privacy Policy
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  1. Protocol
  2. Term Repo Tokens

Valuation

Term Repo Tokens should be valued at the price of the underlying purchase token multiplied by the redemption value (typically 1:1) adjusted for (i) the time value of money and (ii) the perceived risk of collateral backing those loans and (iii) the required maintenance margin ratios applied to those loans. The time value of money should reference the redemption timestamp, which is the earliest time at which Term Repo Tokens can be redeemed (typically begins within 24 hours of the repurchase date).

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Last updated 1 year ago