> For the complete documentation index, see [llms.txt](https://tomorrowlend.gitbook.io/tommorrowlend/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tomorrowlend.gitbook.io/tommorrowlend/protocol/tomorrow-repos/key-terms.md).

# Key terms

The terms of a Tomorrow Repo arrangement are configurable and set by the deployer. Key terms with descriptions and examples are set forth in the table below.

<table><thead><tr><th width="209">Term</th><th>Set By</th><th>Description</th><th>Example</th></tr></thead><tbody><tr><td>Purchase Token</td><td>Deployer</td><td>Refers to the ERC-20 token in which a Term Repo loan is denominated</td><td>USDC</td></tr><tr><td>Collateral Token(s)</td><td>Deployer</td><td>Refers to the ERC<br>-20 token(s) eligible to be posted as collateral</td><td>WETH</td></tr><tr><td>Purchase Price</td><td>User</td><td>Refers to the principal amount borrowed or lent (denominated in Purchase Tokens)</td><td>1,250,000 USDC</td></tr><tr><td>Repo Rate</td><td>Term Auction</td><td>An annualized interest rate that is applied to the Purchase Price to determined the Repurchase Price due at maturity</td><td>3.5%</td></tr><tr><td>Repurchase Price</td><td>Term Auction</td><td>The amount due at maturity/on the Repurchase Date from a borrower to a Term Repo</td><td>1,253,160 USDC</td></tr><tr><td>Repurchase Date</td><td>Deployer</td><td>The date (and time) on which a loan is due/Term Repo matures</td><td>4 weeks</td></tr><tr><td>Repurchase Window</td><td>Deployer</td><td>The amount of time after the Repurchase Date that a borrower has to repurchase their collateral before it is liquidated (typically 24 hours)</td><td>24 hours</td></tr><tr><td>Initial Margin</td><td>Deployer</td><td>The ratio of the market value of collateral posted to the purchase price received by a borrower that is required to open a borrow position</td><td>150%</td></tr><tr><td>Maintenance Margin</td><td>Deployer</td><td>The ratio of the market value of collateral posted to the repurchase price owed by a borrower to avoid liquidation</td><td>125%</td></tr><tr><td>Price Oracle Feed</td><td>Deployer</td><td>The price oracle feed by which borrower collateral is marked to market (updated every hour OR if price movement exceeds a threshold, e.g. 0.5%)</td><td><a href="https://data.chain.link/ethereum/mainnet/crypto-usd/eth-usd">Chainlink</a></td></tr><tr><td>Servicing Fee</td><td>Deployer</td><td>A servicing fee, quoted at an annualized rate, applied on a borrower’s principal loan amount for servicing a Term Repo</td><td>0.5%</td></tr><tr><td>Liquidated Damages</td><td>Deployer</td><td>Anytime collateral is liquidated, the defaulting borrower is charged liquidated damages assessed as a percent of debt that was covered in liquidation. This goes in part to incentivize liquidators and in part to the Protocol</td><td>8.0% (2.8% of which goes to protocol, see below)</td></tr><tr><td>Protocol Liquidated Damages</td><td>Deployer</td><td>The portion of liquidated damages that accrues to the Protocol</td><td>2.8%</td></tr><tr><td>De Minimis Collateral Threshold</td><td>Deployer</td><td>To protect the borrower against excessive liquidation, liquidations cannot exceed the minimum amount necessary to bring a borrower back to the initial margin ratio, except in the case borrower’s collateral value net of his or her repurchase obligation is at or below the de minimis threshold</td><td>$500</td></tr></tbody></table>