> For the complete documentation index, see [llms.txt](https://docs.term.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.term.finance/terminal-1-execution/integrations/morpho.md).

# Morpho

Terminal 1 connects to Morpho so users can use their Morpho positions in routed transactions. Aave can serve as a source of liquidity, a source of collateral, or the destination for a refinanced position.

Morpho routes let users refinance between Morpho and Term, use Morpho borrowing capacity or withdrawable collateral to fund a Term loan, or unwind an Morpho position through a single routed flow.

If a route includes Morpho, the preview will show the expected impact on your Morpho position, including collateral, debt, borrowing capacity, and health factor where applicable. Execution depends on supported assets, available collateral, borrowing capacity, and Morpho market constraints at execution time. If those requirements are not satisfied, the route reverts safely.

{% hint style="info" %}
**Important:** Users should independently verify their resulting Morpho position, including health factor and liquidation risk, before signing. Terminal 1 does not guarantee the accuracy of third-party venue data and will not prevent users from executing routes that result in dangerously low health factors or otherwise risky positions.
{% endhint %}

### What to expect

* Routes that involve Morpho are scoped to a specific Morpho market configuration where applicable.
* If a route includes Morpho, the preview will show the expected impact on your Morpho position, including collateral, debt, borrowing capacity, and health factor where applicable.
* Reverts will typically come from missing authorization, insufficient capacity, or market-specific constraints.

<figure><img src="/files/e4HOlMAtYa2HbtzPTlUw" alt=""><figcaption></figcaption></figure>

### User considerations

* **Resulting position:** review the expected impact on your Morpho position, including collateral, debt, borrowing capacity, and health factor.
* **Liquidation risk:** ensure the resulting health factor leaves enough buffer for price moves, interest accrual, and market volatility.
* **Variable-rate risk:** Morpho borrow and supply rates are variable and may change before or after execution. Review the current rate and understand that the resulting position may accrue interest at a different rate over time.
* **Market availability:** Morpho liquidity, caps, collateral parameters, and borrowing capacity can change before execution and may affect whether the route can be completed.
* **Authorizations:** confirm that any required approvals, permits, or Safe authorizations are in place and use appropriate spending limits.
* **Preview limitations:** previews are informational only. Users are responsible for independently verifying Morpho data, route outputs, health factor, and liquidation risk before signing. Terminal 1 does not guarantee the accuracy of third-party venue data and does not prevent users from executing routes that may result in low health factors or otherwise risky positions.

### Related pages

* [Refinance](/terminal-1-execution/workflows/refinance.md)
* [Looping](/terminal-1-execution/workflows/looping.md)
* [Common errors](/terminal-1-execution/risks-and-failure-modes/common-errors.md)