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 Repos

Collapse position

Borrowers may not repurchase ahead of the repurchase date, but may collapse their position by obtaining and burning corresponding Term Repo Tokens.

Term Repos are non-callable loans where both borrowers and lenders commit to borrowing and lending for the full term. Neither party to a transaction is able to terminate the transaction prior to the repurchase date.

Borrowers are, however, able to negotiate to purchase Term Repo Tokens that represent claims against their repurchase obligation from lenders. To the extent borrowers obtain corresponding Term Repo Tokens, they will be able to collapse the two positions (asset and liability) by burning the Term Repo Tokens against their repurchase balance by calling the borrowerCollapseLoanfunction.

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Last updated 7 months ago