# 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-USD0++-Mar 2025 5x vault (maturity date on [27th March 2025](https://app.pendle.finance/trade/markets/0xafdc922d0059147486cc1f0f32e3a2354b0d35cc/swap?view=pt\&chain=ethereum)) allows users to increase their effective exposure to the underlying PT-USD0++ to 5x by folding their PT-USD0++ collateral on Morpho Finance. This means that *at the Target Leverage of 5x*, the user will receive 5x the spot yield for native base PT-USD0++ yield minus the associated cost of leverage as represented by the borrow APY in the [PT-USD0++/USDC 91.5% LLTV Morpho pool](https://app.morpho.org/market?id=0x8411eeb07c8e32de0b3784b6b967346a45593bfd8baeb291cc209dc195c7b3ad\&network=mainnet\&morphoPrice=0.0) for the PT-USD0++-Mar25 5x Vault.

At maturity, the PT-USD0++-Mar 2025 5x vault will be sunset in favour of the next PT-USD0++ market on Pendle. On the date of expiry i.e. Mar 27th, new user deposits to the PT-USD0++-Mar 2025 5x vault will be disabled and Exit Fees will be turned off to allow users to exit without paying the `minExitFee`.