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:
Parameter | Method | Description |
---|---|---|
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:
Parameter | Method | Description |
---|---|---|
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. |
Last updated