🔥Depositor

Overview

A Depositor in TermMax is a user who provides digital assets to vaults managed by expert Curators in exchange for passive yield. Depositors earn proportional profits from the Curator's strategic capital allocations across different markets without needing to actively manage positions themselves.

How It Works

Depositors access the "Earn" page to view available vaults created by Curators. Each vault represents a unique strategy implemented by a Curator, who strategically places range orders across multiple markets with the same debt token. By depositing assets into a vault, depositors receive vault shares that entitle them to a proportional share of profits generated by the Curator's activities.

Key Benefits for Depositors

• Passive Income: Earn yields without actively managing borrowing, lending, or leveraging positions

• Professional Management: Benefit from Curators' expertise in market selection and range order placement

• Diversification: Gain exposure to multiple markets through a single vault deposit

• Flexibility: Withdraw funds at any time and receive proportional shares

• Transparency: View vault performance metrics before depositing

Understanding Vault Shares

Vault shares follow the ERC-4626 tokenized vault standard:

• Share Price Calculation: The value of each share increases as the vault earns profits

• Profit Distribution: Profits are automatically reflected in the increasing value of your shares

• Fee Application: Performance fees are already accounted for in share value calculations

Risk Considerations

While vaults offer passive income opportunities, depositors should be aware of:

• Curator Dependency: Performance relies on the Curator's strategy and expertise

• Market Risks: Underlying market conditions affect vault performance

• Withdrawal Timing: In certain market conditions, withdrawals might be queued

• Negative Returns Possibility: There is no guarantee of positive returns – depositors may experience negative profits due to adverse market conditions or unsuccessful curator strategies

Summary

As a Depositor in TermMax, you can earn passive income by providing capital to professionally managed vaults. This approach offers the benefits of fixed-rate lending and borrowing strategies without requiring technical knowledge or active management.

However, it's crucial to conduct thorough research on both the curator's track record and current market conditions before committing your funds. While the process of depositing is simple, successful investing requires due diligence in selecting the right vaults. Take time to evaluate curator performance history, understand their strategy, and assess how current market trends might affect their approach.

By selecting well-researched vaults and diversifying your deposits across multiple strategies, you can better optimize your earning potential while maintaining the flexibility to withdraw your funds at any time.