> For the complete documentation index, see [llms.txt](https://iflux-global.gitbook.io/iflux-global/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://iflux-global.gitbook.io/iflux-global/token-installment/how-it-works.md).

# How It Works

## Overview

The Token Installment service of iFlux Global allows you to purchase a cryptocurrency by paying a portion upfront and repaying the remaining amount in installments.

You can customize your installment plan by choosing from various upfront payment options (ranging from 15% to 85%) and installment durations (10 days, 1 - 2 - 3 - 6 and 12 months).

This service offers a flexible and convenient way to acquire your desired token/coin.

## System Architecture

The core components include:

* **Installment Contracts:** These self-executing contracts govern the terms of each installment agreement, including the asset being purchased, the number of installments, the payment schedule, and the interest rate.
* **Escrow Mechanism:** A secure escrow system holds the purchased tokens until all installments are paid, ensuring the fulfillment of contractual obligations by both the buyer and iFlux Global.

## Product Features

* **Upfront Payment:** Acquire a portion of a desired token with a minimum down payment of 15%.
* **Zero Liquidation:** Your contract will never face margin liquidations, even with extreme token price swings.
* **Flexible Installment Plans:** Choose from various installment durations (10 days, 1 month, 2 months, 10 months, etc.) with plans to offer greater customization in the future.
* **Unlimited Withdrawals:** No restrictions on withdrawal amounts, allowing for flexible fund management.
* **Zero Trading Fees:** Enjoy seamless transactions without incurring any trading fees.
* **Competitive Pricing:** Offers competitive pricing compared to other platforms, ensuring cost-effectiveness for users.

## Interest Rates (APR)

The interest rates for our Token Installment service are calculated using the Annual Percentage Rate (APR) method. 

This means that the interest payment will be calculated using the following formula:

***Interest payment = Total amount borrowed x APR (%) x Installment duration (in years)***

*Note:* We define 1 month as 30 days and 1 year as 360 days.

The interest rate applied to your purchase depends on the upfront token you choose for repayment and the duration of your installment plan. 

For a detailed breakdown of our current interest rates, please refer to our rate table.

***Important Note:*** While we may adjust our interest rates to reflect market fluctuations, the interest rate specified in your contract will remain fixed from the moment you sign.

## Payment Schedule

The repayment period is split into 10 equal terms, regardless of the chosen installment duration.

In each term, you will be required to pay a portion of the principal and interest on the total borrowed amount.

For instance, you want to buy 1 BTC on an installment plan for 6 months and pay 15% upfront in USDT. The current price of 1 BTC is 68,365 USDT and the APR of USDT is 10.68%.

* Upfront payment: 68.365 15% = 10.254,75 USDT 
* The remaining 85% (borrowed amount): 68.365 - 10.254,75 = 58.110,25 USDT
* Total interest of 6 months: 58.110,2510,68%612=3.103,087 USDT
* Total principal and interest: 58.110,25+ 3.103,087 = 61.213,337 USDT
* The installment duration is 6 months and is divided into 10 terms, with a frequency of 18 days/term.

Total payment amount each term: 61.213,337 10 = 6.121,3337 USDT

The interest payment starts at 0:00 (determined by your device's time zone) on the day the payment is due. 

To avoid a late status, ensure your interest payment is made within 24 hours of the due date.

***Important Note:*** iFlux Global does not support early repayment. You must repay each installment on the scheduled due date.

## Claim Token

After completing each installment payment, you will receive an additional portion of the token.

**Important Note:** The initial upfront payment will be held and converted into the desired token after the final installment payment.

## Late Payment Policy

In case the customer is late in paying interest, the following penalties will be applied.

* 1-day delay: A 1% penalty on the total borrowed amount will be deducted from the initial upfront payment.
* 2-day delay: The overdue payment (including principal and interest) will be deducted from the initial upfront payment.

To restore the contract, you must pay all outstanding penalties in a single payment.

## Contract Termination

The installment contract will be terminated in either of these scenarios:

1. The initial upfront payment amount is fully deducted as penalties 
2. Payment is not received within 15 days after the final payment due date