# Key terms The terms of a Term Repo arrangement are configurable and set by the deployer. Key terms with descriptions and examples are set forth in the table below.

Term	Set By	Description	Example
Purchase Token	Deployer	Refers to the ERC-20 token in which a Term Repo loan is denominated	USDC
Collateral Token(s)	Deployer	Refers to the ERC -20 token(s) eligible to be posted as collateral	WETH
Purchase Price	User	Refers to the principal amount borrowed or lent (denominated in Purchase Tokens)	1,250,000 USDC
Repo Rate	Term Auction	An annualized interest rate that is applied to the Purchase Price to determined the Repurchase Price due at maturity	3.5%
Repurchase Price	Term Auction	The amount due at maturity/on the Repurchase Date from a borrower to a Term Repo	1,253,160 USDC
Repurchase Date	Deployer	The date (and time) on which a loan is due/Term Repo matures	4 weeks
Repurchase Window	Deployer	The amount of time after the Repurchase Date that a borrower has to repurchase their collateral before it is liquidated (typically 24 hours)	24 hours
Initial Margin	Deployer	The ratio of the market value of collateral posted to the purchase price received by a borrower that is required to open a borrow position	150%
Maintenance Margin	Deployer	The ratio of the market value of collateral posted to the repurchase price owed by a borrower to avoid liquidation	125%
Price Oracle Feed	Deployer	The price oracle feed by which borrower collateral is marked to market (updated every hour OR if price movement exceeds a threshold, e.g. 0.5%)	Chainlink
Servicing Fee	Deployer	A servicing fee, quoted at an annualized rate, applied on a borrower’s principal loan amount for servicing a Term Repo	0.5%
Liquidated Damages	Deployer	Anytime collateral is liquidated, the defaulting borrower is charged liquidated damages assessed as a percent of debt that was covered in liquidation. This goes in part to incentivize liquidators and in part to the Protocol	8.0% (2.8% of which goes to protocol, see below)
Protocol Liquidated Damages	Deployer	The portion of liquidated damages that accrues to the Protocol	2.8%
De Minimis Collateral Threshold	Deployer	To protect the borrower against excessive liquidation, liquidations cannot exceed the minimum amount necessary to bring a borrower back to the initial margin ratio, except in the case borrower’s collateral value net of his or her repurchase obligation is at or below the de minimis threshold	$500

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