Fuel

Borrowing

Creators can choose to borrow their initial liquidity within the ranges specified below.

Free user:

• 0.5 - 1 ETH

VIP user:

• 0.5 - 5 ETH

Repayment

Methods

The Fuel + Interest can be repaid in a few ways:

• If a repayment threshold is met, Base Terminal will automatically remove enough liquidity to payback the amount owed. The tokens received from removing liquidity are then burned.

• If the Token is a Tax Token, the taxes firstly go towards paying back the amount owed. Once repaid the taxes configured by the creator come into place.

• The amount owed can be manually repaid on the token's page on baseterminal.org

• If the amount owed is not repaid within 7 days of the token being created (or from the scheduled deployment date), Base Terminal will automatically remove enough liquidity to retrieve the amount owed (if possible). This can be risky for projects if it reaches this point as it could result in most/all of the liquidity being removed.

Threshold

A repayment threshold is a level (chosen by the creator) which represents how many multiples the LP tokens has to be worth before Base Terminal automatically reclaims the amount borrowed + interest.

Repayment threshold	Interest
2x	25%
3x	50%
4x	75%
5x	100%

For example if a project borrows 1 ETH and choses a 2x repayment threshold. Once the LP tokens are worth 2 ETH + X amount of tokens. Base Terminal will clawback 1.25 ETH (amount borrowed + interest). The X amount of tokens received will be burned.

After repayment

Once repaid, the LP tokens held by the Base Terminal smart contract will be locked for the lock-up period specified by the creator.