Early exit

During the term of a Const lending agreement, participants have the option to terminate the lending relationship prior to its scheduled maturity.

If borrowers decide to exit the agreement early, they are required to repay the outstanding principal along with the accrued interest in full.

In the event that a lender opts for an early exit, the protocol will initiate a process to identify a replacement lender. Upon securing a replacement, the exiting lender can reclaim their principal and any interest that has accrued up to that point, albeit subject to a small penalty. The new lender will then be entitled to earn the remaining interest for the duration of the loan.

In rare instances where an automatic replacement for the lender cannot be found, the exiting lender has the option to offer a discount on the remaining interest and list the loan for manual replacement on a secondary market. This allows for a more flexible approach to finding a suitable replacement, ensuring that the loan can continue to be serviced effectively.