💹Market

A Market is where users can place orders for borrowing, lending, leveraging, and providing liquidity. Each Market includes the following essential elements and parameters, configured by the TermMax administrator:

• Debt Token: The token borrowers borrow and lenders lend (e.g., USDC).

• Collateral Token: The token borrowers use as collateral (e.g., PT-sUSDe-27Dec2024).

• Maturity Date: The date by which borrowers must repay the debt (e.g., December 28, 2024).

• Liquidation LTV (LLTV): The Loan-to-Value ratio at which liquidation is triggered. Liquidation occurs if the loan's LTV meets or exceeds the LLTV threshold due to a decline in collateral value or an increase in debt token value.

• Max LTV (MLTV): A more conservative LTV threshold with a built-in buffer, used to calculate the maximum amount of tokens that can be borrowed when a market maker (as a borrower) deposits collateral. The MLTV helps prevent immediate liquidation due to sudden market price fluctuations.

• Leverage Market: This is a flag indicating whether leverage is enabled for the market. Not all markets are suitable for leverage due to high risk of liquidation and other factors.

Interest Calculation

The interest amount ($I$) on TermMax will be calculated based on the matched interest rate ($r$) and time ratio ($\theta$).

$$\begin{cases} t_{M} := \text{maturity timestamp} \\ t_{m} := \text{matched timestamp} \\ d:= \text{days from } t_{m} \text{ to } t_{M} \end{cases}$$

$$d = \lceil \frac{t_{M}-t_{m}}{86400} \rceil$$

$$\theta = \lfloor \frac{d}{365} \rfloor$$

$$I = r \theta$$

Open Time: The time at which the market opens for market makers and curators to create and activate range orders.