# Vault Synopsis

Pendle Finance was built for users to harness full control over their Yield Bearing Tokens simply by splitting the tokens into their underlying components: PT  (Principal Tokens) and YT (Yield Tokens). Pendle has emerged as the leading yield-derivative protocol attracting over 2 billion in TVL as users trade on  yield markets via a native AMM.

PT tokens act similarly to zero-coupon bonds where users purchase the tokens at a discount and may redeem them at full value of 1:1 upon reaching term of maturity. This guarantees a fixed APY% once the position is opened allowing users to secure their preferred profit levels at any time before the maturity date.

The PT-sUSDe-Mar 2025 7x vault ([maturity date on 29th May 2025](https://app.pendle.finance/trade/markets/0xb162b764044697cf03617c2efbcb1f42e31e4766/swap?view=pt\&chain=ethereum)) allows users to increase their effective exposure to the underlying PT-sUSDe to 7x by folding their PT-sUSDe collateral on Morpho Finance. This means that *at the Target Leverage of 7x*, the user will receive 7x the spot yield for native base PT-sUSDe yield minus the associated cost of leverage as represented by the borrow APY in the [PT-sUSDe/DAI 91.5% LLTV Morpho pool](https://app.morpho.org/ethereum/market/0x407d8c123443d362ffdfe73208068ef158a21d1a44a988c9acc23a51bade7905/pt-susde-29may2025-dai) for the PT-sUSDe-May25 7x Vault.

At maturity, the PT-sUSDe-May 2025 7x vault will be sunset in favour of the next PT-sUSDe market on Pendle. On the date of expiry i.e. May 29th, new user deposits to the PT-sUSDe-May 2025 7x vault will be disabled and Exit Fees will be turned off to allow users to exit without paying the `minExitFee`.