In the Primary Markets, borrowers can place orders to borrow at their preferred interest rates by providing over-collateralized base tokens. According to the rules, the earlier a borrower places the order within a given round of the auction, the higher the priority the borrower's order will have in the matching process. This ensures that earlier orders are given priority over later ones, and allows borrowers to maximize their chances of finding a good match. The resulting interest rate from the matching will be better than or equal to the borrower's expectation, ensuring that borrowers are able to access competitive rates that align with their preferences.

For example, if Alice is willing to borrow at an interest rate of 5% APR, she may end up paying an interest rate of 3% or lower after the auction, depending on the market interest rate and the available lender orders at that time. Borrowers who place their orders earlier in a particular auction round have a better chance of paying lower interest rates and matching up with more lending amount, compared to borrowers who place their orders later in the same round.

After the auction, borrowers, whose orders are matched successfully, will have a loan position with a fixed term and fixed interest rate. They will be required to repay the loan by the end of the maturity date, which is 23:59 UTC+0 on the maturity date.

Multi-collateral mode is not supported for now.

Stablecoin-Pair Loan

The Term Structure protocol currently supports several stablecoins, including USDT, USDC, and DAI, as being both collateral and borrowed tokens (Supported Tokens). Due to the nature of stablecoins and the need for higher capital efficiency, Term Structure categorizes loans involving only stablecoins as "Stablecoin-Pair Loans". These loans have different LTV ratio requirements and liquidation thresholds compared to other types of loans. The details of these requirements and thresholds are explained in the sections on LTV Ratio and Liquidation Thresholds.

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