# 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.
TermSet ByDescriptionExample
Purchase TokenDeployerRefers to the ERC-20 token in which a Term Repo loan is denominatedUSDC
Collateral Token(s)DeployerRefers to the ERC
-20 token(s) eligible to be posted as collateral		WETH
Purchase PriceUserRefers to the principal amount borrowed or lent (denominated in Purchase Tokens)1,250,000 USDC
Repo RateTerm AuctionAn annualized interest rate that is applied to the Purchase Price to determined the Repurchase Price due at maturity3.5%
Repurchase PriceTerm AuctionThe amount due at maturity/on the Repurchase Date from a borrower to a Term Repo1,253,160 USDC
Repurchase DateDeployerThe date (and time) on which a loan is due/Term Repo matures4 weeks
Repurchase WindowDeployerThe 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 MarginDeployerThe ratio of the market value of collateral posted to the purchase price received by a borrower that is required to open a borrow position150%
Maintenance MarginDeployerThe ratio of the market value of collateral posted to the repurchase price owed by a borrower to avoid liquidation125%
Price Oracle FeedDeployerThe 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 FeeDeployerA servicing fee, quoted at an annualized rate, applied on a borrower’s principal loan amount for servicing a Term Repo0.5%
Liquidated DamagesDeployerAnytime 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 Protocol8.0% (2.8% of which goes to protocol, see below)
Protocol Liquidated DamagesDeployerThe portion of liquidated damages that accrues to the Protocol2.8%
De Minimis Collateral ThresholdDeployerTo 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