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Automated Actions

Fixed Rate Auto-Rolling​

Users who opt-into the Tenor auto-rolling smart contract can set a policy to auto-renew their borrow position before maturity. Users must set the following parameters:

  • Max Duration
  • Max Renewal Rate

Before maturity, the Tenor contract will programatically run a public auction where any third party can renew the borrower's position into a longer dated fixed rate maturity. If the loan can't be renewed at a rate that is below the user's maximum set rate in his policy and the user's debt is not repaid at maturity, the user's collateral could be liquidated to repay the debt as enforce by the Morpho protocol.

Fixed Rate to Variable Rate Auto-Rolling​

Users can opt-into the Tenor auto-rolling contract to set a policy that enables any third party to renew the user's loan at a variable rate if the position can't be renewed at a fixed rate.

Variable Rate to Fixed Rate Auto-Rolling​

Users can opt-into a contract to move back to a fixed rate position from the variable rate market if the fixed rate market offers a rate that matches the user's conditions.

Position Auto-Closing​

Users can opt-into an auto-closing contract that will programatically withdraw collateral to repay the user's debt if the user's LTV crosses certain thresholds. This contract enables the closing of a user's position before being liquidated. Note that large price changes or the inability from third parties to call the auto-closing contract might result in the auto-closing contract not being called before the Morpho protocol liquidation kicks in.