Skip to main content

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.

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.

Renewal Options​

Tenor offers three options for handling positions at maturity:

Auto-renew at a Fixed Rate​

The auto-renewal smart contract enables any third party to automatically borrow in a longer-dated maturity on behalf of the users to repay the maturing position. The rate for the new borrow is determined through an auction process, ensuring the borrower gets the best available rate up to their specified maximum renewal rate. If the position cannot be renewed at a fixed rate, it will default to a variable rate for an open term on Morpho V1.

Auto-renew at a Variable Rate​

If fixed-rate liquidity is unavailable or you prefer flexibility, the position automatically renews at a variable rate in an open-term market on Morpho V1.

Self-Managed​

You choose to manage the position manually. If not repaid by maturity, the collateral will become eligible for liquidation by any third party on the Morpho v2 protocol to repay lenders.