❓FAQ

What is TermMax, and how does it simplify leveraged yield strategies?

TermMax is a DeFi platform that makes leveraging super easy. Instead of juggling complex loops and multiple protocols, TermMax lets you amplify your yields with simple, one-click token transactions.

By using Gearing Tokens (GT), you can enter leveraged positions efficiently and securely. It takes the headache out of leveraging, so you can focus on maximizing your returns without the usual hassle.

How does the Gearing Token (GT) work, and how can I use it to achieve leveraged yields?

The GT lets you easily enter leveraged positions without the usual complexities. By purchasing a GT, you're effectively leveraging your assets to amplify returns from yield-bearing tokens.

GT simplifies the process by bundling the necessary steps into one token. You benefit from higher potential yields while the platform manages liquidation risks for you.

What risks do GT holders face?

As a GT holder, you're exposed to liquidation risk due to the leveraged position. If the value of your collateral drops significantly, your position could be liquidated to cover the debt.

Additionally, market volatility can affect your leveraged returns. It's important to monitor your positions and understand the risks involved with leveraging.

What are Fixed-rate Tokens (FT), and how can they provide me with stable, predictable income?

FT are assets you buy at a discount and redeem at full value upon maturity. They offer a fixed interest rate over a set period, giving you predictable returns.

By holding FTs until maturity, you earn a stable income without worrying about fluctuating interest rates. It's a straightforward way to secure steady gains.

What risks do FT holders face?

FT holders primarily face counterparty risk. If borrowers default or if there's a market disruption, it could impact your returns.

However, TermMax's physical delivery mechanism helps protect you. In partial liquidation events, you receive a proportional share of the collateral, mitigating potential losses.

Do GT holders receive fixed income or variable income?

It depends on the collateral you're using! As a GT holder, if your collateral is a fixed-rate asset like PT tokens, you'll receive fixed income because the yields are fixed. If your collateral has a floating rate, then your income will be variable and fluctuate with the market.

The cool thing about TermMax is that the borrowed interest rates are always fixed, no matter what type of collateral you use. This unique feature means you have predictable borrowing costs, and your returns depend on whether your collateral's rates are fixed or floating.

What is the X Token (XT), and what role does it play in the leveraging process within TermMax?

XT acts as an intermediary in the leveraging process. When you deposit funds, they're initially converted into XT.

XT facilitates the transition between your deposited tokens and the Gearing Token (GT). It's a crucial step in enabling the leveraged position but isn't typically held for long-term investment.

How does TermMax's AMM-based leveraging model reduce transaction costs and enhance efficiency for users?

TermMax uses an Automated Market Maker (AMM) model to streamline leveraging within a single system. This reduces the need for multiple transactions across different platforms.

By consolidating steps, you save on gas fees and time. The efficient process makes leveraging more accessible and cost-effective for all users.

What is the physical delivery mechanism in TermMax, and how does it protect lenders in case of collateral liquidation?

The physical delivery mechanism ensures that if a borrower defaults and liquidation is only partially successful, lenders receive a proportional share of the collateral directly.

This means your investment is protected even in adverse situations. You get actual assets instead of just a loss recovery promise, adding an extra layer of security.

What trading strategies are recommended for FT and XT tokens?

For FT tokens: When interest rates of the underlying tokens are decreasing, consider buying (going long) to lock in higher fixed returns. If rates are increasing, selling (going short) might be advantageous since the fixed rate becomes less attractive.

For XT tokens: When interest rates of the underlying tokens are increasing, buying (going long) can capitalize on higher leveraged yields. If rates are decreasing, selling (going short) can help avoid reduced returns.

How can borrowers leverage their idle or valuable assets on TermMax?

Borrowers can collateralize assets they don't want to sell, like yield-bearing tokens, to borrow funds at fixed rates. This unlocks liquidity without liquidating your holdings.

You can use the borrowed funds to invest further or capitalize on interest rate differences, effectively leveraging your existing assets for additional gains.

What benefits do borrowers gain in TermMax compared to borrowers in other protocols?

TermMax offers fixed-rate borrowing, providing you with certainty over your repayment costs. This predictability is valuable for planning and managing risk.

Here's the unique advantage:

• Fixed Repayment Interest: Your interest rate is locked in at the time of borrowing, so you know the maximum amount you'll need to repay.

• Flexibility to Lower Costs: Before the due date, you have the option to purchase corresponding Fixed-rate Tokens (FT) at the current market price to repay your debt.

  • If the market interest rate is higher than your borrowing rate: You can buy FT tokens at a discount, allowing you to repay your debt at a lower cost than initially agreed.

  • If the market interest rate is lower than your borrowing rate: You can choose to pay the fixed interest rate you originally agreed upon, without any additional cost.

In other words, the fixed interest rate in TermMax represents the maximum you'll need to pay back. This flexibility means you could potentially reduce your repayment costs if market conditions are favorable—an option not typically available in other protocols.

This combination of predictability and flexibility sets TermMax apart, offering borrowers both security and the opportunity to benefit from favorable market movements.

What benefits do lenders gain in TermMax compared to lenders in other protocols?

Lenders enjoy fixed interest rates, ensuring stable and predictable returns. The physical delivery mechanism adds extra security by protecting your investment in case of borrower default.

TermMax also reduces complexity and transaction costs, making the lending process more efficient and potentially more profitable.

What advantages do liquidity providers gain by supplying liquidity to TermMax's AMM pools?

Liquidity providers earn a share of transaction fees, yields from the LP token lp-FT, and platform incentives, boosting their returns. The AMM model allows for flexible exit strategies, so you can withdraw or adjust your position when you want.

By supplying liquidity, you're also supporting the platform's functionality, contributing to a healthier ecosystem.

How do I get started with TermMax, and what are the steps to begin using its services?

To get started, visit the TermMax platform and connect your compatible wallet. Decide whether you want to be a lender, borrower, degen, farmer, or liquidity provider.

Follow the intuitive interface to deposit assets, purchase tokens like GT or FT, or provide liquidity. The platform guides you through each step, making it easy even if you're new to DeFi.

Why is a GT's Value lower than my expectation?

Unlike money markets like Aave where interest accrues over time, TermMax finalizes all costs upfront. Therefore:

GT Value = Collateral - (Debt + Full Interest + Fees)

This means the GT's value already accounts for the full interest payment that will be due at maturity.