Fixed Rate

In a fixed-rate, fixed-term structure, both the interest rate and the duration are defined at the time a position is created and remain unchanged until maturity.

This provides:

• Borrowers with upfront clarity on their rate, enabling a predictable cost of capital and more efficient peer-to-peer execution.
• Lenders with guaranteed rates that are unaffected by market volatility, enabling them to allocate capital over longer time periods with certainty.

How Fixed-Rates Work on Tenor

Tenor offers fixed-rate, fixed-term lending and borrowing through the Morpho V2 protocol. When a user initiates a position through Tenor, they are matched peer-to-peer at an agreed rate and for a set duration on Morpho V2. For borrowers, the collateral currencies are deposited on the Morpho contract and borrowed funds are sourced from the lender programatically.

At maturity, if the position is not repaid by the borrower, the collateral deposited by the borrower can be programatically sold to repay the debt, ensuring the lender can withdraw their funds after maturity.