Sell Principal Tokens

This guide will assist you in navigating the 'Sell Principal Tokens' module.

The 'Sell PT' module enables you to sell Principal Tokens (PTs) before their maturity date. You can find this tool by navigating to your Portfolio, locating the row where your PTs are listed, and clicking on the [Manage] button. A drop down menu will appear - simply select the [Sell PT] option to open the following module.

The first two rows provide you with essential information about the Principal Tokens

  • [Morpho]: Identifier of the pool where the Principal Token can be traded

  • Maturity: This date represents when your Principal Tokens normally could be redeemed 1:1 for the underlying token

Following this, an input field displays the PT balance in your wallet. Here, you can enter the amount of PT tokens you wish to sell for the underlying token before maturity.

When you input the number of PTs to sell (in our example, that's 200 USDC-PTs), the lower section will present a transaction summary:

This summary tells you the minimum amount of underlying tokens you can expect to receive from the sale.

Once you've reviewed the summary, click [Sell PTs] to initiate the transaction.

Frequently Asked Questions

  1. What is the benefit of selling Principal Tokens before maturity?

If you don't want to wait any longer for your Principal Tokens to reach maturity, you can sell them back to the pool for immediate underlying tokens.

  1. Why am I not receiving an equal amount of underlying for my Principal Tokens?

The number of underlying you will receive depends on various factors such as time left to maturity and available liquidity.

  1. Can I sell a portion of my Principal Tokens, or do I need to sell all at once?

Yes, you can sell a portion of your PT holdings anytime.

  1. Are there any fees associated with selling Principal Tokens?

Protocol and underlying pool fees apply. They are already reflected in the summary.

  1. Why does it say, 'You will receive at least'?

The summary provides you with the estimated outcome based on the current liquidity and factors in all the fees. If the underlying liquidity shrinks after initiating the transaction (e.g., someone sells a large PT position before you), the transaction will not settle for less than what is displayed in summary. This also means that if available liquidity increases, you could get an even better deal than what the summary displays.

  1. What happens after selling my PTs?

After selling your Principal Tokens, you will receive the underlying token directly into your wallet.

Last updated