Collapse position

Borrowers may not repurchase ahead of the repurchase date, but may collapse their position by obtaining and burning corresponding Tommorrow Repo Tokens.

Tomorrow Repos are non-callable loans where both borrowers and lenders commit to borrowing and lending for the full term. Neither party to a transaction is able to terminate the transaction prior to the repurchase date.

Borrowers are, however, able to negotiate to purchase Tomorrow Lend Tokens that represent claims against their repurchase obligation from lenders. To the extent borrowers obtain corresponding Tomorrow Lend Tokens, they will be able to collapse the two positions (asset and liability) by burning the Term Repo Tokens against their repurchase balance by calling the borrowerCollapseLoanfunction.