> ## Documentation Index > Fetch the complete documentation index at: https://docs.momentrates.xyz/llms.txt > Use this file to discover all available pages before exploring further. # For traders > Moment in the words you already know, from TradFi and from DeFi. Already know yield trading? This page maps Moment to what you know. ## Coming from TradFi Moment is a strip market for on-chain yield: it cuts a yield-bearing asset into dated periods and lets you trade each at its own forward rate, paid up front. ![A floating-rate asset cut into dated periods, like a futures strip](https://mintcdn.com/moment-0fa29e7e/5c4BULtyWxFid-gy/images/strips-analogy.webp?fit=max\&auto=format\&n=5c4BULtyWxFid-gy\&q=85\&s=5031dc616cc74fe5773156f4d7fa6ed2) A floating asset with no maturity, cut into dated periods like a futures strip. ### The short version Think of a yield-bearing vault share as a floating-rate note with no maturity. Moment lets you strip its yield into dated periods, like STRIPS. Each period trades at its own forward rate, like a contract month in a SOFR futures strip. Every position is prepaid: no margin, no funding and no liquidation. Leverage still has a notional, and that is the point: it is the exposure you are targeting, paid for up front, so you can never lose more than you paid. ### Translation table | You know | On Moment | | - | - | | Floating-rate note | The yield-bearing asset (an ERC-4626 vault share). The "index" is the vault's own yield. | | Buy a zero / receive fixed | [Fixed](https://docs.momentrates.xyz/use-the-app/fixed.md): receive a set amount by a date, then hold it flat | | Pay fixed, receive floating | [Leverage](https://docs.momentrates.xyz/use-the-app/leverage.md): more yield exposure over a window, paid for with a small flat amount from Now on. Prepaid, no margin. | | Forward-starting swap, FRA | Leverage with a later Start | | Unwind or tear-up | [Close](https://docs.momentrates.xyz/use-the-app/close.md), for all periods or per period | | Accrual period, futures contract month | A period between two maturities | | IMM dates | Maturities on the 2nd and 17th at 08:00 UTC; 8 open at once (example market) | | Forward curve | The Forward view on Markets: one rate per period | | Discount factor, PV | Present value of your TimeBalance | | Resting limit order on a CLOB | [Limit order](https://docs.momentrates.xyz/use-the-app/limit-bid.md): one side, one rate, one maturity; fills once | | Price-time and pro-rata matching | [Cohorts](https://docs.momentrates.xyz/use-the-app/limit-bid.md): oldest cohort fills first, pro rata inside it | | Dealer quoting both sides | [Recursive liquidity](https://docs.momentrates.xyz/use-the-app/recursive.md): a bid and an ask that keep quoting. No hedging. | | STRIPS reconstitution | Principal and interest periods merge back into one balance | | Accrued interest | Synced yield: earned since your last sync, added at the next one | | Exchange or clearing fee | Taker fee: 0.5% of the rate, multiplicative; makers keep the full spread. Charged on premium, not notional. | ### What's different * **Prepaid, not margined.** "Leverage" means more yield exposure per unit of capital, like owning a coupon strip. The notional is the exposure you chose, fully paid up front: no variation margin, no liquidations and no margin-funded size. * **No benchmark fixing.** The floating leg is the vault's realised yield, not SOFR. Underlying vault risk is your risk. * **Continuous time.** Interest accrues by the second on-chain, on an ACT/365 basis. There are no business-day rules and no payment lag. * **Forward periods, not spot tenors.** A Moment period is a disjoint window, like one futures contract month, not a 2Y or 5Y point. * **LPs carry their fills.** A dealer hedges its bucketed DV01. A Moment liquidity provider keeps what fills, like a ladder of resting orders. * **Settlement is a balance change.** Proceeds land in your TimeBalance at the next sync, not as an FRA-style discounted cash payment. * **Fees are charged on premium.** The taker fee applies to the interest value traded, not to notional. See [Fees](https://docs.momentrates.xyz/good-to-know/fees.md). ### Strategies you can run | Strategy | How | | - | - | | Lock a rate | Fixed to one maturity | | Trade the forward | Leverage with a later Start | | Ladder | Fixed to several maturities | | Calendar spread | More exposure in one window, less in another | | Make markets | Limit orders at your rate, or Recursive quotes around it | ## Coming from DeFi If you've fixed yield with a PT or gone long yield with a YT, you know Moment's trades; but Moment never splits your asset into dated tokens. ### One balance, not a split In PT/YT split designs, each maturity gets its own pair of tokens and its own pool. On Moment you hold one balance laid out across time, your **TimeBalance**, and every trade reshapes it. ![PT/YT split per maturity compared with one continuous TimeBalance](https://mintcdn.com/moment-0fa29e7e/5c4BULtyWxFid-gy/images/split-vs-timebalance.webp?fit=max\&auto=format\&n=5c4BULtyWxFid-gy\&q=85\&s=f88e274615afbf8c1e3497476131e753) Left: a token pair per maturity. Right: one continuous TimeBalance. ### Translation table | You know | On Moment | What changes | | - | - | - | | Buy PT, "fix" | [Fixed](https://docs.momentrates.xyz/use-the-app/fixed.md) | No token to redeem; after the date you just hold the asset | | Buy YT, "long yield" | [Leverage](https://docs.momentrates.xyz/use-the-app/leverage.md) | You pick the window; it can start later than today | | YT decays to zero | Your window ends | Nothing is left to sell or let expire | | PT pulls to par | Your balance steps up at the maturity | Shown on the chart as a step | | Implied APY | The rate for a period on Markets | One rate per period, not one per pool | | Underlying APY | Synced yield, shown in blue | Added to your balance at each [sync](https://docs.momentrates.xyz/start/reading-the-chart.md) | | Separate pool per maturity | One AMM Book across all maturities | Early periods serve every later trade | | Roll to the next maturity | Not needed | Extend by trading one more window | | Expired PT | Doesn't exist | Your balance continues and keeps earning | | LP in a PT pool | [Recursive liquidity](https://docs.momentrates.xyz/use-the-app/recursive.md) | You set a bid and an ask instead of a curve | | Limit order at an APY | [Limit order](https://docs.momentrates.xyz/use-the-app/limit-bid.md) | Fills once; proceeds go into your balance | | SY wrapper | None | ERC-4626 shares go in directly | | Oracle-priced PT collateral | None | No price oracle on rates, no liquidations | ### What's different * **One position per asset, not one per maturity.** You never manage a drawer of dated tokens. * **Windows, not "now to maturity".** Forward exposure is native. You can lever a window that starts in two weeks, rather than implying it from two maturities. * **No maturity cliff.** When a maturity passes, your balance just continues and keeps earning. * **Liquidity is shared.** A trade to a far maturity routes through every earlier period, so early liquidity serves every later trade. * **Orders, not just curves.** Liquidity providers place limit orders at a rate, or quote a bid and an ask around the market. ![A far-maturity trade routing through every earlier period](https://mintcdn.com/moment-0fa29e7e/5c4BULtyWxFid-gy/images/shared-liquidity.gif?s=8ac21a8467c9a2ca479a8c52392f2b7a) A trade to a far maturity steps through every earlier period in the same book. ### Strategies | Strategy | How | | - | - | | Fixed carry | Fixed on a stablecoin vault | | Event window | Leverage over a window you expect to outperform, starting later if the event is later | | Implied vs realised | Fixed when the rate looks rich, Leverage when it looks cheap | | Ladder | Fixed to several maturities | | Make markets | Limit orders at your rate, or Recursive quotes around the market | > [!NOTE] > > Leverage is prepaid. If the vault's realised yield over your window averages below the rate you paid, you lose part of what you paid, and at 0% yield you lose all of it. Nothing can force-close your position. ## Related topics - [Moment: choose when you earn yield](https://docs.momentrates.xyz/index.md) - [What is Moment?](https://docs.momentrates.xyz/start/what-is-moment.md) - [Limit ask](https://docs.momentrates.xyz/use-the-app/limit-ask.md) - [Limit bid](https://docs.momentrates.xyz/use-the-app/limit-bid.md) - [Recursive](https://docs.momentrates.xyz/use-the-app/recursive.md) This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.