Maturity
Every position on Tenor has an explicit end date called its maturity. Maturity is the timestamp at which the outstanding debt becomes due. It is set when the position is initiated and does not change.
On Morpho Midnight (fixed-rate, fixed-term markets), every position in a given market shares the same maturity timestamp.
Fixed terms give both sides of the market certainty: borrowers know exactly when repayment is due, and lenders know exactly when they will be able to redeem their lend positions.
A borrow position that reaches maturity without being repaid or renewed will be liquidated, even if the LTV is below the LLTV. Configure auto-renewal to avoid this.
What happens at maturity
At maturity, the outstanding debt is due in full. One of three things happens:
- Repayment: The borrower settles the outstanding debt, the lender redeems their position, and the borrower can then withdraw their collateral as they see fit.
- Renewal: If the borrower has auto-renewal configured, the position is renewed into a new fixed-term position or into a variable-rate open-term position, and the borrower continues under the new terms. The lender redeems their position as in a normal repayment. Renewal is permitted within a window before maturity and remains permitted after maturity, until the position is repaid, renewed, or liquidated.
- Liquidation: If the borrower does not settle the debt and the position is not rolled into a new term via renewal, the Morpho protocol allows third-party liquidators to seize part of the borrower's collateral to repay the outstanding debt. See post-maturity liquidations.
Repaying before maturity
A borrower can close their position at any time before maturity by repaying the borrowed amount plus accrued interest. See repay early for details and examples.