Reference
FAQ
The questions the rest of these pages tend to raise, answered in a line or two.
If the answer here is not enough, each one links onward to the page that treats it properly.
Does splitting sell my token?
No. A split locks the token and mints both halves to you. Holding both is economically the same as holding the token, and merging restores it.
Why does PT cost less than the token?
Because it gives up every dividend before maturity. The size of the discount is the value of the dividends being carved out — and it is also the buyer’s return.
What happens to YT at maturity?
It settles worthless, having already delivered everything it was going to. Claim the final accrual and the position is complete.
Can I buy YT without ever splitting?
Yes. Both sides trade on open markets. Splitting is one way to acquire them; buying is another, and merging works with bought units just as well.
Are dividends guaranteed?
No. They are decided by the underlying company. A cut or cancelled dividend reduces what YT collects, and there is nothing in the protocol that compensates for it.
What do I need to merge?
Equal amounts of PT and YT for the same token and the same maturity. The mergeable amount is whichever of the two balances is smaller.
Is the fixed return really fixed?
At maturity, yes — it was set by the price you paid. Before maturity PT trades freely, so an early sale realises the market price instead. See PT, the price side.
What is the difference between the PT pool and the YT pool?
The PT pool is deeper and earns swap fees on top of the fixed return its inventory carries. The YT pool is intentionally smaller and quotes a higher fee APR, because the volatile side costs more to make.
Can a loop be liquidated?
A loop is a collateralised borrow, so PT priced down tightens the loan against it. The exposure is to being forced to unwind early, at market price times leverage. See Looping risk.
Why is my YT position worth less than I paid?
Most likely because it has been paying out. Every distribution collected is value removed from what remains, so YT drifts toward zero by design. Check the claimed total before concluding anything went wrong.