FAQs
General
What is Tenor?
Tenor is a non-custodial fixed-rate borrowing platform built on top of Morpho V2. It provides advanced features and a powerful interface that abstract away the complexity of fixed-rate, fixed-term borrowing. The platform also includes advanced functionalities for sophisticated users. Learn more here.
Where are collateral assets deposited?
Collateral is deposited into Morpho V2, a non-custodial, permissionless, and immutable protocol.
How is the interest rate determined?
Positions initiated through Tenor have a fixed interest rate. The rate is determined by the market and is fixed for the duration of the position.
How are markets created?
With Morpho V2, markets are intent-based and peer-to-peer. They are created when a lender and borrower are matched. Tenor streamlines this process through an intuitive interface for matching existing offers, while Tenor Pro enables advanced users to create custom offers with bespoke terms (e.g. LTV, collateral type, maturity).
Can I choose the maturity of my position?
Yes. Tenor allows users to select from the maturities available in the market. Advanced users can also broadcast custom offers to set specific maturities.
How are transactions executed through Tenor?
Lender-borrower matching and offer execution happen directly onchain via Morpho. Tenor offers additional smart contracts that enable features such as automating position renewals and execution with custom conditions. These contracts can be disabled by the user at any time.
Is Tenor secure?
Tenor implements industry-leading security measures. It's built on Morpho, a protocol recognized for its rigorous and battle-tested design. Further details on Morpho's security can be found here.
These various measures should not prevent users from carrying out their own research and assessing associated risks. Users should read the Tenor risk disclosures before interacting with the Tenor.
Borrowing
What can I borrow?
Tenor enables users to borrow stablecoins using blue-chip collateral like ETH and BTC. With Tenor Pro, users can also borrow assets such as stablecoins and ETH, and create custom offers for long-tail assets.
How much can I borrow?
Each market has a specific and fixed Liquidation Loan-To-Value (LLTV) parameters. It is minimum value of collateral required relative to the borrowed assets. For example, if this ratio is 90%, the value of borrowed assets must not exceed 90% of the value of the collateral, or the position is eligible for liquidation.
The amount you can borrow is therefore directly linked to the value of your collateral and the LLTV of the market.
What is the cost of borrowing?
Interest is paid at the fixed rate agreed upon when the position is initiated. The rate remains unchanged until maturity. Tenor does not charge any additional platform fees for borrowing. However, future fees may be introduced for advanced features or integrations, with prior notice provided.
Does my collateral earn any interest?
No. Collateral assets do not earn interest as they are not lent out to borrowers.
Lend
Can I lend on Tenor?
Yes, lending at fixed rates is possible on Tenor, but it is only accessible through the Tenor Pro interface using limit orders.
Position Management
Can you repay a position before maturity?
Yes. Borrowers can repay their position in full at any time before maturity. They may also exit early at the market rate, provided there is sufficient available liquidity. If a position is repaid before maturity, the borrower is still responsible for paying the interest agreed upon at the time the position was opened.
What happens at maturity?
At maturity, borrowers can choose to extend their positions into longer-dated fixed-rate maturities or variable-rate markets by opting into Tenor’s non-custodial auto-renewal features. Tenor provides smart contract tools to simplify position management and streamline the rollover process. Understand what occurs at maturity in more detail here.
Liquidations
When can my position get liquidated?
Liquidation protects lenders by preventing bad debt. A position becomes eligible for liquidation when its Loan-to-Value (LTV) exceeds the market’s Liquidation Loan-to-Value (LLTV) threshold, indicating the account is no longer sufficiently collateralized. Learn more about liquidations here.
What is the liquidation price?
The liquidation price is the collateral price at which a position becomes eligible for liquidation. It is displayed in the Tenor interface and should be monitored closely to avoid the position becoming undercollateralized.
Who performs liquidations?
Liquidations on Morpho are permissionless. Anyone can repay an undercollateralized account’s debt and, in return, seize an equivalent value of the borrower’s collateral plus a bonus. This bonus serves as the liquidator’s incentive and profit.
How can I avoid liquidations?
To avoid liquidation, a user's position must maintain a Loan-to-Value (LTV) ratio that remains below the market’s Liquidation Loan-To-Value (LLTV) threshold. If the LTV increases, users can reduce it by depositing additional collateral or repaying part of the outstanding debt. Tenor includes optional alerts that can help users stay informed when their position nears the liquidation threshold.
Risks & Security
Tenor is designed with security as a core principle. The smart contract powering the platform will undergo formal verification, comprehensive testing, third-party audits, and a bug bounty to ensure reliability and minimize risk across all components. Learn more about Tenor's security practices here.
For a detailed overview of the platform’s risks, read the Tenor risk disclosures.
Oracle risk
Each Morpho market relies on a price oracle defined at market creation. Some oracles may be vulnerable to manipulation, potentially leading to inaccurate pricing, liquidations, or bad debt. When assessing oracle risk, consider the oracle’s security, update frequency, and degree of decentralization.
How are wallets created when signing up by email or Google?
When signing up by email or Google, a new wallet is created for the user with Privy. Learn more about Privy's terms of service here and the risks of using Privy here.
Have Morpho and Tenor smart contracts been audited?
Yes, both Morpho and Tenor smart contracts have undergone audits. You can review past audit reports here. Smart contracts carry inherent risks, users should read the Tenor risk disclosures before interacting with the Tenor.
Support
How can I get support?
You can find support by contacting the Tenor team at contact@tenor.finance or on Discord.