Contract Liquidation

Overview

The Contract Liquidation feature allows users to end their installment contracts early under specific conditions. This feature provides flexibility and risk management for users who no longer wish to continue their payment schedule.

Key Features

• Early Contract Termination: Users can terminate contracts early when approved by iFlux Global.

• No Further Payment Required: Users are released from paying principal and interest in the future upon liquidation.

• Token Adjustment: A penalty fee is applied, and the remaining token balance is recalculated according to the number of completed periods.

• Fast Settlement: The liquidation process takes 12 hours to complete and be settled.

• Eligibility Requirement: Contracts become eligible for liquidation after the first principal and interest payment period has been completed.

The Early Liquidation Table

Number of Paid Installments	Penalty Fee (%)	% of Total Token B User Receives
1	1.8%	(X% - 1,8%) B
2	1.6%	(X% - 1,6%) B
3	1.4%	(X% - 1,4%) B
4	1.2%	(X% - 1,2%) B
5	1%	(X% - 1,0%) B
6	0.8%	(X% - 0,8%) B
7	0.6%	(X% - 0,6%) B
8	0.4%	(X% - 0,4%) B
9	0.2%	(X% - 0,2%) B

X%: Upfront Payment Rate

Example for Better Understanding

Suppose a user wants to buy Token B using Token A through an installment contract.

• The user makes an upfront payment of 15% in Token A to start the contract.

• The remaining 85% of the payment is split equally into 10 monthly installments, paid with Token A.

• After each installment payment, the user will receive 10% of the total Token B purchased.

• Upon completing the final (10th) payment, the user will also receive an additional 15% of Token B (corresponding to the upfront payment).

If the user decides to liquidate the contract before completing all payments, a penalty fee will be automatically applied and deducted from the upfront amount.

As a result, the amount of Token B the user receives will be reduced based on how many installments they have completed.

The Early Liquidation Table

Number of Paid Installments	Penalty Fee (%)	% of Total Token B User Receives
1	1.8%	13.2%
2	1.6%	13.4%
3	1.4%	13.6%
4	1.2%	13.8%
5	1%	14%
6	0.8%	14.2%
7	0.6%	14.4%
8	0.4%	14.6%
9	0.2%	14.8%

Important Notes

• Referral Commissions: All referral commissions related to that contract will stop upon termination.

• Future Obligations Waiver: Principal and interest payments are not required for the remaining periods.

• Settlement Time: Within 12 hours following liquidation, the remaining Token B (after the penalty has been deducted) will be credited.

• Eligible Contracts: Liquidation is only possible for contracts that are active (live) and penalty-free.