> For the complete documentation index, see [llms.txt](https://docs.xccy.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xccy.finance/concepts/fixed-yield-layer/early-exit.md).

# Early Exit

{% hint style="warning" %}
To preserve system safety, fairness between counterparties, and protocol sustainability, **direct early exit is not supported** for Fixed Yield positions.
{% endhint %}

### 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**.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.xccy.finance/concepts/fixed-yield-layer/early-exit.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.