Early Exit

Fixed Yield positions on XCCY are commitment-based products. Once opened, they are designed to be held until maturity.

To preserve system safety, fairness between counterparties, and protocol sustainability, direct early exit is not supported for Fixed Yield positions.

Why Direct Early Exit Is Disabled

A Fixed Yield position represents a locked economic agreement:

• lenders commit capital at a fixed rate,

• borrowers lock in a fixed cost of funds,

• the protocol commits to hedging or matching the position.

Allowing unilateral early exit would:

• introduce asymmetric risk to the opposite side,

• create optionality that can be exploited during rate changes,

• shift unpredictable losses to the protocol balance sheet.

To avoid this, Fixed Yield positions are non-cancelable by default.

NFT-Based Exit (v2)

In protocol v2, Fixed Yield positions are represented as transferable NFTs.

This enables a market-driven early exit without protocol intervention.

Users can:

• sell a Fixed Deposit NFT to another participant,

• sell a Fixed Borrow NFT (debt position),

• exit at a price determined by current market rates and demand.

This approach ensures:

• no forced repricing by the protocol,

• no hidden subsidies or penalties,

• transparent, fair exit conditions.

The protocol does not guarantee liquidity or price for NFT exits.

Alternatives to Early Exit

If you require flexibility, consider one of the following options:

1. Use Shorter Maturities

Instead of a long lock-up:

• choose ON, 1W, or 1M tenors,

• roll positions periodically,

• retain control over timing.

2. Build Fixed Yield Yourself

Advanced users can replicate Fixed Yield manually by:

• lending in floating-rate markets,

• hedging rate exposure using XCCY IRS positions.

This provides full exit flexibility at the cost of:

• active management,

• exposure to mark-to-market PnL.

3. Use Floating Lending Directly

For maximum flexibility:

• supply assets to floating-rate protocols,

• accept variable yield,

• withdraw at any time.

This avoids lock-ups entirely, but with unpredictable returns.

Key Takeaway

Fixed Yield is intentionally non-interruptible.

If you need:

• certainty → use Fixed Yield and hold to maturity,

• flexibility → use shorter tenors, IRS, or floating markets.

NFT-based exits provide optional liquidity without compromising system safety.