Fixed Term
Fixed rate, fixed end date, no liquidation.
No liquidation. Ever.
How it works#
You lock collateral, pick a term, and borrow. The total you will owe at the end is quoted once, at origination, and never changes again. There is no utilization curve, no rate spike and no surprise at the end. Between opening and maturity, nothing can touch your position.
It resolves one of two ways: you repay the quoted amount in full and your collateral unlocks, or the term ends unpaid and the collateral is claimed.
Terms and rate#
| Field | Value |
|---|---|
| Rate | 8%/yr, simple interest |
| Terms offered | 1, 7, 14 or 30 days |
| Contract bounds | 1 to 30 days |
| Loans per address | One at a time, per market |
Interest is simple, not compounded, and computed once: principal + principal × rate × term / 1 year. That figure is stored with the loan and is the exact amount you repay.
Borrowing limit#
The fixed-term limit is lower than the variable one on every market, and always will be, enforced on-chain in both directions.
| Market | Fixed-term max LTV | Variable max LTV |
|---|---|---|
| Tesla | 30% | 45% |
| NVIDIA | 35% | 50% |
| Apple | 40% | 55% |
| Microsoft | 40% | 55% |
| S&P 500 ETF | 45% | 60% |
Why you can borrow less here#
There are two reasons, and the structural one is the stronger.
- Losses land on a shared pool. In a peer-to-peer market, the lender who offers a high LTV is risking their own capital and chose that number themselves. Here a default is absorbed by every depositor, none of whom picked the limit. So the cap belongs to governance and has to be conservative.
- Nothing closes the position early. A liquidatable loan gets trimmed at the first sign of trouble. A fixed-term loan has to survive the entire term untouched, so the opening cushion is the only protection it ever gets.
Repaying#
Repay the full quoted amount and the collateral is released in the same transaction. Partial repayment is not supported: the loan is a single fixed obligation rather than a running balance.
Repayment works during a halt, on the same principle as the variable market. It only ever reduces risk.
What happens at maturity if you do not repay#
Nothing happens automatically. The loan simply becomes claimable, and then it is a race you can still win.
- You can still repay. There is no late fee and the amount owed does not grow after the end date. As long as nobody has claimed the loan, repaying works exactly as before.
- Anyone can claim it. Once past maturity, any address can settle the loan. The entire collateral is claimed and the debt is written off. No price is read and no partial return is calculated.
Whoever settles receives 0.5% of the seized collateral, capped on-chain at 2%. That exists because settling costs only gas and hands the caller nothing otherwise, so without it nobody would bother and the pool would go on carrying a dead loan at full value.
Defaulting forfeits everything
A halt suspends defaults
For lenders#
Fixed-term loans draw on the same pool as variable borrowing. The vault counts outstanding fixed principal but not the interest, which is recognised at the moment repayment actually arrives. Booking unearned interest early would let a lender deposit late, redeem early and collect on a loan that had not paid yet. See Earn.