Fixed Rates, Continuous Credit: How Auto Rollover Works on Kamino Kamino Fixed Rates unlock a new credit primitive onchain, combining a defined cost of capital with automatic rollover so borrowers can maintain positions across terms without manually refinancing at expiry. When a loan reaches its end date, Auto Rollover handles it in this order: Renew at the same rate or lower for the same term or longer, if liquidity is available. Switch to the variable rate if no matching fixed-rate reserve has liquidity by the end of the term. Auto-repay from your collateral if neither is possible, with a fee that grows over time. Rollover is on by default and can be switched off with the Enable Rollover toggle on your position. You can close your position any time before the end date. What Happens at the End Date A keeper bot runs Auto Rollover during the rollover window, which opens before the end date. The window length is set per market. Once the end date passes, the loan can no longer roll over. 1. Rollover at the same rate or lower When you enable rollover, the app sets your rollover limits from your current loan. Your rate can stay the same or go lower, and your term can stay the same or get longer. These limits can't yet be changed manually. Among reserves within those limits that have liquidity, the keeper picks the lowest rate and the longest term. If that's your current reserve, the term clock resets and no tokens move, provided no lenders are queued to withdraw. If it's a different reserve, your loan moves over in a single atomic transaction. 2. Switch to the variable rate If none of the reserves within your limits has liquidity by the time your term ends, your loan switches to the variable-rate reserve for the same asset, where the market supports it, instead of going into Auto-repay. Your position stays open and you can repay at any time. This is the only case where your rate can end up higher than your fixed rate, because the variable rate follows market demand. 3. Auto-repay If the loan can't roll over or switch to the variable rate, and you haven't repaid, Auto-repay begins at the end date. Your position becomes liquidatable regardless of collateral health, starting with a small share that grows to 100% over a window set per market. This repays the debt gradually rather than all at once. Liquidators earn a bonus that rises each day, so Auto-repay gets more expensive the longer it runs. Repaying before the end date avoids it entirely. Term length, the rollover window, and the Auto-repay window are all set per market. The example below uses the AUTO/wYLDS Fixed Rate Multiply vault, so check the settings for your own market before your end date. Auto Rollover in Practice with AUTO/wYLDS The AUTO/wYLDS vault is the first Fixed Rate Multiply vault on Kamino. It loops AUTO, HastraFi's yield-bearing token backed by Figure's tokenized auto loans, at a fixed 5.3% borrow rate on 30-day terms. Say you open a position with $100,000 borrowed at 5.3%. Your end date is 30 days after the loan starts. The rollover window opens 3 days before your end date. If your current reserve has liquidity and no lenders waiting to withdraw, your loan rolls into a new 30-day term at 5.3% and gets a new end date. If another reserve offers a lower rate or a longer term and has liquidity, your loan moves there instead. If no matching reserve has liquidity when the term ends, your loan switches to the variable rate and keeps running. If neither is possible and you haven't repaid, Auto-repay starts at the end date. Over the next 3 days, a growing share of the position becomes liquidatable and the debt is repaid from your collateral in small increments, with the cost increasing the longer Auto-repay runs. FAQ Why would a rollover fail? Rollovers most often fail because lenders have asked for their capital back. Since lenders cannot withdraw from a fixed-rate reserve mid-term, they join a withdrawal queue, and any queued request blocks rollover for every borrower in that reserve. A rollover can also fail if the reserve does not have enough liquidity. How do I know if my loan will roll over? Before your end date, check your reserve. If it has available liquidity and no queued withdrawals, which you can confirm on-chain, your loan can roll over. What if my loan can't roll over? You can wait in case liquidity is added late in the rollover window, or close the position before the end date to avoid Auto-repay entirely. If Auto-repay has already begun, closing the position early in the window reduces the total cost, as the cost of Auto-repay increases over the course of the window. Can my rate go up at rollover? Not through a fixed-rate rollover, which keeps your rate the same or lower, for the same term or longer. The only case where your rate can rise is a switch to the variable rate, which happens when no matching fixed-rate reserve has liquidity by the end of your term. Can I set a maximum rate below my current rate? Yes. Your rollover limits are independent of your current loan's rate and term. With a 5% loan and a maximum rate of 4%, the loan can roll into a reserve at 4% or 3.5%. If those reserves lack liquidity, it will not roll into a reserve at 4.5% or 5%, even if they have liquidity, including your current reserve. Can positions using eMode roll over? No. Rollover is not supported inside elevation groups (eMode), so fixed-rate positions borrowing in eMode must be repaid by the end date to avoid Auto-repay. Can a fixed-rate loan still be liquidated? Yes. A fixed rate locks your borrow cost but not the value of your collateral, so your position can be liquidated if its LTV crosses the liquidation threshold during the term. Interest also accrues and gradually raises your LTV even at a fixed rate, so monitor position health as you would on a variable-rate loan. How do lenders get their capital back? Lenders commit their capital for the full term and exit early by submitting a withdrawal ticket. A queued ticket blocks rollover for every borrower in that reserve, so those loans are repaid at their next end date and lenders in a 30-day reserve like AUTO/wYLDS receive their capital within one term at most. Is there a penalty for closing early? An Early Repay Penalty applies if you repay during the first term before the loan has accrued its minimum required interest. The penalty equals the projected interest for the remainder of the term, scaled by a per-reserve setting. After the minimum interest has accrued, or once a loan rolls over, the penalty no longer applies and you can close at any time at no additional cost. Can I turn off rollover? Yes. Rollover is on by default, and you can switch it off at any time with the Enable Rollover toggle on your position. What's Next for Fixed Rates? AUTO/wYLDS is the first Fixed Rate Multiply vault. Kamino is bringing fixed rates to more markets and expanding the strategies available at a fixed borrow cost. The rollover mechanics described above apply to every fixed-rate market, while term lengths, rollover windows and fallback options are set per market. Full details: kamino.com/docs/products/borrow/fixed-rates This is informational content and does not constitute financial advice, an offer, or a solicitation. Prospective depositors should review the full documentation and loan agreement, conduct their own due diligence, and consult with professional advisors before participating. Kamino Lend involves risk, including potential loss of capital. Terms, rates, and features are subject to change and are not guaranteed. Subject to Kamino's T&Cs and geo-blocking — unavailable in restricted jurisdictions. Informational only, not investment, legal, or tax advice. Full risk disclosure: https://kamino.com/docs/risk/asset-risk/index