> 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/workflows/refinance.md).

# Refinance

Refinance lets a user close an existing obligation and reopen the position through a new venue or market.

* **Refinance out:** move a Term obligation to another venue.
* **Refinance in:** move an obligation from another venue into a Term market.

Where supported, refinance executes as a single route that closes the current leg and opens the replacement leg without requiring the user to manually sequence intermediate steps.

Terminal 1 currently supports refinance routes involving **Aave** and **Morpho**. Additional venues may be added over time.

<figure><img src="/files/EO5lgpAEl9sLWuTQpoVC" alt=""><figcaption></figcaption></figure>

### Refinance directions

* **Refinance out (Term → Aave/Morpho):** repay a Term obligation and reopen the position on an external venue.
* **Refinance in (Aave/Morpho → Term):** close an external obligation and reopen the position in a Term market.

### Typical use cases

* Move to a more favorable fixed-term outcome or market.
* Change venue or collateral composition.
* Adjust position size or risk profile without manual unwinds.
* Consolidate multiple steps (repay, swap, borrow, settle) into a single execution flow.

### What the route does (high level)

A refinance route generally:

* determines the current obligation to be closed,
* sources required repayment assets (wallet, deployed capital, or swaps, depending on workflow),
* repays the current leg,
* opens the replacement leg under the new venue/market parameters,
* enforces route constraints so execution fails safely if conditions change.

### Authorizations (EOA vs Safe)

Refinance routes require token authorization to move assets during execution. EOAs may use permits where supported. Safe wallets typically provide approvals as explicit batched steps rather than offchain permit signatures. This changes how authorization is delivered, not what the route executes.

### What to review before signing

* **Target venue/market:** for Term, confirm the market (maturity, loan token, collateral parameters).
* **Position being refinanced:** confirm the obligation being moved and the destination venue or market.
* **Loan and collateral pair:** refinance routes use the same loan token and collateral asset; confirm the pair matches the position you intend to move.
* **Flash loan terms:** refinance routes use flash liquidity to repay the current obligation and establish the replacement obligation in one execution flow. Review any flash loan fees or route buffers.
* **Execution environment:** atomic execution vs Safe batch (where supported).
* **Authorization:** approvals/permits/spending caps required by the route.

### Common failure cases

* Required approvals/permits are missing or insufficient.
* Flash liquidity is unavailable or route buffers cannot be satisfied.
* Route constraints fail (fees, buffers, deadlines, or venue constraints).
* External venue conditions change (liquidity moved, borrowing capacity changed, quote expired).