# 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 **8.5% 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.