What it is
Recurring, short-horizon draws against treasury holdings to bridge operational cash timing: settlements, capital calls, scheduled expenses. Cash is drawn when needed, repaid when receipts arrive, and drawn again next cycle.Mechanics on AGI3
- The position is an ordinary borrow position; what differs is the cadence. A position can be drawn, cleared with Repay All, and drawn again without being closed, and the collateral stays posted between cycles.
- Interest accrues only while debt is outstanding, so the pattern’s cost is the drawn days plus network fees per transaction. The first-time approval per asset and market is one-time.
- If receipts arrive in a different asset than the debt, repayment needs a swap first, and that cost belongs in the plan.
When it fits
- Cash needs with known dates but mismatched arrivals, where unwinding positions to fund them would cost more than the interest on a short draw.
- Draws that are small against the posted collateral. The pattern exists for operational convenience, so the position should sit deep in the Healthy band and stay there.
What it costs
- The floating borrow rate on drawn days.
- Network fees each cycle.
- The operational overhead of monitoring a live position even when the drawn amount is small.
How it fails
- Treating the market as a committed line. Available liquidity is a property of the market on the day; no one is obligated to have it there when your settlement date arrives, and a thin day is exactly when others are drawing too. Check the market’s available liquidity ahead of known cash dates rather than on them.
- Short-term drift. A two-week draw that stays out for a quarter accrues interest the plan never priced, and the health factor drifts with it.
- Gap risk on market-hours collateral. Tokenized stocks can gap when their underlying market reopens; the class’s lower ceiling and wider buffer in Risk parameters are sized for exactly that, and a draw against stock collateral inherits it.
- The repayment path breaking. A repay that depends on a swap inherits swap costs and slippage at repayment time rather than at planning time.
Managing it
- Draw late and repay early; the economics of the pattern live entirely in the drawn days.
- Pre-check the borrow market’s available liquidity before each known cash date.
- Keep the drawn amount small against collateral so the health factor stays deep in Healthy; this book funds operations and should never itself become the risk.
- Route the platform’s warnings to a treasury operations inbox rather than an individual.