> 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/overview.md).

# Overview

Terminal 1 is the execution layer for managing fixed-term positions across Term and connected venues (e.g., Aave, Morpho, and DEX aggregators). It bundles dependent steps into a single atomic route where possible: a route either completes in full or reverts.

Terminal 1 reduces approval friction through Permit-based signing flows and bounded spending caps where supported. Terminal 1 does not replace the Term protocol. The existing protocol documentation ([Term Repos](/protocol/term-repos.md), [Rollovers](/protocol/term-repos/rollovers.md), [Fees and Penalties](/protocol/fees-and-penalties.md), [Risk Disclosures](/protocol/risk-disclosures.md)) remains the reference for core mechanics.

<figure><img src="/files/CiuOayqZMcpiqwXaA7Ne" alt=""><figcaption></figcaption></figure>

### What Terminal 1 does

* Builds execution routes for fixed-term position management.
* Bundles dependent steps into one transaction where possible.
* Adds Permit-based UX to reduce repeated token approvals.

### What Terminal 1 does not change

* Auction mechanics.
* Margin and liquidation rules.
* Base protocol fees and penalties.

### Core workflows

* **Intents (limit orders):** express a desired borrow or lend (amount, term, rate and size constraints). When matched, Terminal 1 can execute settlement and any dependent steps as a single route where supported. Intents define what you want; routes define how execution is composed.
* **Refinance** moves an active borrow to an external platform or protocol.
* **Close / Loop-out** repays debt and exits linked exposure.
* **Rollover** extends an active borrow into any future term.
* **Looping** increases or restructures exposure through repeated borrow and swap steps.

### Before you execute

Review route inputs/outputs, fees, and buffers. Confirm approval scope and token spend limits. See Risks & Failure Modes for common failure cases.