# 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 [27th March 2025](https://app.pendle.finance/trade/markets/0xcdd26eb5eb2ce0f203a84553853667ae69ca29ce/swap?view=pt\&chain=ethereum\&py=output)) 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/market?id=0x5e3e6b1e01c5708055548d82d01db741e37d03b948a7ef9f3d4b962648bcbfa7\&network=mainnet) for the PT-sUSDe-Mar25 7x Vault.

At maturity, the PT-sUSDe-Mar 2025 7x vault will be sunset in favour of the next PT-sUSDe market on Pendle. On the date of expiry i.e. Mar 27th, new user deposits to the PT-sUSDe-Mar 2025 7x vault will be disabled and Exit Fees will be turned off to allow users to exit without paying the `minExitFee`.