How is the fixed rate achieved?
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Your position account borrows on Aave at the normal variable rate — Aave itself is unchanged. When you accept a signed rate quote, an interest buffer is set aside inside your own account, and a permissionless keeper continuously pays the accruing variable interest from that buffer. Aave's rate keeps floating; your cost doesn't. If a rate spike outpaces the buffer, the variable-rate backstop reserve tops it up so your rate holds.
Who funds the interest buffer?
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It's priced into your quote. When you open a position, the prepaid interest is retained from the borrowed amount — you receive the notional minus the prepayment, and the buffer sits in your own account, per debt asset. It is never pooled with other users' funds. The backstop reserve stands behind it as a second layer, funded and managed by the protocol.
What happens if Aave's variable rate spikes?
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Nothing changes for you. The keeper keeps paying accrued interest from your buffer, and if the spike burns through it faster than priced, a top-up flows from the backstop reserve directly into your account. The backstop can only add coverage to registered accounts — it has no way to take funds out of them.
Is the fixed rate guaranteed, and what are the backstop limits?
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Your rate holds as long as your prepaid buffer plus the backstop reserve cover the accrued variable interest — in practice, through the rate spikes the system is sized for. The backstop is a finite, on-chain reserve: you can verify its balance at any time, and its outflows are restricted to topping up registered accounts in their own debt assets. It is not an unlimited guarantee from a balance sheet.
Can I repay early, and is any unused interest refunded?
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You can repay principal at any time — through your account or directly on Aave — and settlement is automatic once the debt reaches zero. The unused portion of the prepaid buffer is not refunded: it is the protocol's spread, and it's how the fixed rate is priced from day one. Early repayment stops further interest from accruing; it doesn't claw back the prepayment.
Can I still be liquidated?
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Yes. Fixed-rate positions fix your interest cost, not your collateral risk. Your account is a standard Aave borrower, so the usual health-factor rules apply — if collateral value falls too far, Aave liquidates the account directly. Each account is fully isolated: a liquidation touches only that account's collateral, never other users or other accounts you own.
What fees are included in the displayed rate?
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The quoted fixed rate is all-in: the protocol's margin is the spread already embedded in the quote (the difference between your fixed rate and the variable interest actually paid). There are no separate origination, management, or performance fees, and the interest keeper pays its own gas. You pay gas only for your own transactions — deposits, opening, withdrawals.
Which assets, networks and maturities are supported?
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Collateral: any asset listed on the Aave V3 market — deposit one or several, in any combination — or activated BTC vaults on the Babylon path. Debt: any Aave V3 borrowable asset; one term can hold positions in multiple debt assets. Maturity: set by your quote — the first position fixes the term's expiry, and later positions join the same maturity; once a term is cleared you can open a fresh one.
Who can access or move my funds?
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Funds leave your account by exactly two paths: interest repayment to the Aave pool, and the realized spread to the Aegis multisig after your term ends. The permissionless keeper can only reduce your account's own debt — it cannot withdraw anything. Collateral withdrawals are owner-only, bounded by Aave's health-factor check. The rate quote signer holds no funds and has no on-chain authority, and the backstop role can only add coverage. Even the token-rescue function refuses to touch debt assets or the account's aTokens.
What happens if Aave pauses a market or the account is liquidated?
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If liquidated: Aave seizes collateral from your account under its standard rules; the protocol records it so your position books stay correct, and a fully liquidated position settles automatically. Other assets and other accounts are unaffected. If Aave pauses a market: your account is an ordinary Aave borrower, so a pause affects it exactly as it would any borrower — no new borrows, deposits, or withdrawals on that market until Aave resumes; your term, buffer, and positions are unaffected on-chain, and interest keeping resumes when the market does.