Repay

Once the orders are matched, the maturity date and the amount of the debt (principal plus interest) are fixed. The borrower must repay the loan before 00:00 UTC+0 on the specified maturity date. If the borrower fails to do so, the borrower's collateral will be liquidated in order to protect the rights of the lenders and maintain the stability of the platform. This liquidation process is automatic and ensures that the lender's interests are protected when there is a significant drop in collateral value. It also helps to maintain the overall health and integrity of the Term Structure protocol.

The repayment process is fully on-chain and allows borrowers to claim their collateral by repaying the entire amount of the debt. Once the repayment is completed, the loan records will be updated and the borrowers can retrieve their collateral.

Borrowers can fully repay their loan at any time before the maturity date and the debt amount of the loan is pre-determined based on the fixed maturity date and fixed interest rate of the fixed-income tokens. The borrowers are required to repay the initial borrowed amount plus the full interest amount calculated till the maturity date for withdrawing their collateral completely, even if they repay the loan a few days or weeks before the maturity date. This is to ensure that lenders are able to receive the full amount of interest that they are entitled to, regardless of when the borrowers choose to repay the loan.

Early repayment will not reduce the total amount of interest that the borrower is required to repay.