Maturity

Positions on Tenor are originated with fixed terms. When a position reaches the end of its term, it has reached its maturity. At maturity, the borrowed amount plus interest becomes due.

A user can repay their debt at anytime before maturity. They can either repay the borrowed amount plus interest or sell their position to another user who is willing to buy it. Learn more about exiting a position before maturity here.

What Happens at Maturity?

If a debt position is not repaid at maturity, the Morpho V2 protocol enables any third party to execute a soft liquidation of the collateral to repay the user's debt, ensuring lenders can withdraw their funds. To prevent post maturity liquidations, Tenor offers opt-in auto-renewal where the borrower can programatically borrow from a longer dated maturity and repay their existing debt.

Learn more about Tenor's auto-renewal feature and the different renewal options available here.