Open-Term Loan

An open-term loan has no fixed maturity date. The borrower can keep the loan open indefinitely as long as collateral coverage stays within the lender's required range and interest is paid (or accrued). When LTV drifts toward the margin call threshold, the borrower tops up collateral, pays down principal, or accepts liquidation.

Most open-term crypto loans are offered by DeFi protocols (Aave, Compound) or platforms using DeFi rails. Variable interest rates are typical — set by protocol utilization or market conditions, sometimes adjusting block-by-block.

Why it matters for Milo customers

Milo offers fixed-term crypto-backed loans, not open-term — typically 12-month terms with extensions available. Fixed terms provide predictability: fixed rate, known maturity, no surprise variable-rate adjustments. The trade-off versus open-term is less flexibility on duration, but most Milo borrowers prioritize rate certainty.

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