Term Repo

Each deployment of a Term Repo is comprised of a set of smart contracts broadly divided into three groups: (i) the Term Auction Group, (ii) the Term Servicer Group and (iii) the Term Repo Token. It's key economic parameters are set out in the table below:

ParameterMethodDescription

Purchase Token

Initialized by Deployer

Address of the purchase token or token that is borrowed

Collateral Token(s)

Initialized by Deployer

Address(es) of collateral token(s) eligible to be pledged as collateral

Repurchase Date

Initialized by Deployer

Timestamp of the date and time on which repurchase is due

Repurchase Window

Initialized by Deployer

Time delta (typically 12-24 hours) that specifies the grace period during which repurchase payments may be submitted without default

Initial Margin Ratio

Initialized by Deployer

The ratio of the market value of collateral tokens and the amount tendered in a Term Auction bid required for a bid to be confirmed

Maintenance Margin Ratio

Initialized by Deployer

The ratio of the market value of collateral tokens to the repurchase price (the amount due at maturity) required to avoid a margin deficit (default)

Price Feed

Initialized by Deployer

Address of the oracle price feed used to value collateral tokens

Repo Rate

Determined by Auction

The pricing rate that determines the repurchase price (principal plus interest) due on the repurchase date

Other relevant economic parameters include:

ParameterMethodDescription

Servicing Fee

Initialized by Deployer

An annualized rate applied to accepted bid amounts and charged to borrowers who receive a loan in auction

Liquidated Damages

Initialized by Deployer

The additional amount of collateral tokens forfeited by a borrower in liquidation, due to a failure to repurchase or margin deficiency, expressed as an annualized percentage rate. Liquidated damages are split between the liquidator and the Protocol.

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