Overview

Terminal 1 is the execution layer for managing fixed-term positions.

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, Rollovers, Fees and Penalties, Risk Disclosures) remains the reference for core mechanics.

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.