> ## Documentation Index
> Fetch the complete documentation index at: https://docs-staging.centuari.finance/llms.txt
> Use this file to discover all available pages before exploring further.
# CBT Early Exit
> Exit your lending position before maturity using limit or market orders
## Overview
CBT holders can exit their lending position before maturity without waiting for redemption. By selling CBT back to the order book, you convert your position to stablecoins immediately or at your desired price.
**Key Advantage**: Unlike regular borrowing, CBT holders don't need additional collateral to exit. The CBT itself represents your claim, selling it is simply transferring that claim to someone else.
## Why Early Exit?
Common reasons to exit before maturity:
* **Need liquidity**: Unexpected expense or opportunity
* **Rate changes**: Market rates increased, want to re-lend at higher rate
* **Risk management**: Reducing exposure to protocol
* **Portfolio rebalancing**: Adjusting allocations
## Exit Options
### Limit Order Exit
Set your desired exit price and wait for a match.
Go to your CBT position in the dashboard
Choose the limit order option
Enter the minimum price you'll accept per CBT
**Example**: CBT fair value is $0.96, you set limit at $0.955 (slightly below)
Your sell order enters the order book
When a buyer matches your price, you receive stablecoins
**Pros**:
* Get your desired price
* No slippage
* Order can be modified or cancelled
**Cons**:
* May take time to fill
* May not fill if price moves away
* Requires monitoring
### Market Order Exit
Exit instantly at the current market price.
Go to your CBT position in the dashboard
Choose the market order option
See the current best bid price you'll receive
Execute the trade instantly
**Pros**:
* Instant execution
* Guaranteed fill
* No monitoring needed
**Cons**:
* May get worse price in thin markets
* Slippage on large orders
* Can't cancel once submitted
## No Collateral Required
This is a critical difference from regular borrowing!
When you sell CBT to exit early:
| Action | Collateral Required? |
| ------------------- | ----------------------------------- |
| New borrow order | ✅ Yes (110-150% depending on asset) |
| Selling CBT to exit | ❌ No |
**Why no collateral?**
When you sell CBT, you're not borrowing, you're selling an existing asset. The CBT buyer takes on your position and will redeem at maturity. You simply receive the current market value.
## Pricing Your Exit
### Understanding CBT Value
CBT price is determined by:
```
Theoretical Price = Face Value / (1 + Rate × Time Remaining)
```
**Example**: 8% APY CBT with 90 days remaining
```
Price = $1 / (1 + 0.08 × 90/365) = $1 / 1.0197 = $0.9807
```
### Market vs Theoretical
Actual market prices may differ:
| Factor | Effect on Price |
| ---------------------- | ----------------------- |
| High demand to exit | Price below theoretical |
| High demand to buy | Price above theoretical |
| Low liquidity | Wider bid-ask spread |
| Rate expectations up | Price down |
| Rate expectations down | Price up |
### Checking Current Price
Before exiting, review:
* **Best bid**: Highest price someone will pay now
* **Theoretical value**: Fair value based on rate and time
* **Spread**: Difference between bid and ask
* **Depth**: Volume available at each price
## Exit Strategies
**Situation**: Need cash immediately
**Strategy**: Market order
**Trade-off**: Accept current market price for instant liquidity
```
Position: 10,000 CBT @ $0.975 theoretical
Market bid: $0.970
Receive: $9,700 instantly
Cost: $50 (0.5% below theoretical)
```
**Situation**: Want to exit but not urgent
**Strategy**: Limit order at or above theoretical
**Trade-off**: May take hours/days to fill
```
Position: 10,000 CBT @ $0.975 theoretical
Limit order: $0.978
Wait for match
Receive: $9,780 when filled
Gain: $30 above theoretical
```
**Situation**: Need some liquidity, keep some exposure
**Strategy**: Sell portion, keep rest
```
Position: 10,000 CBT
Sell: 5,000 CBT via market ($4,850)
Keep: 5,000 CBT (hold to maturity)
```
## Impact on Order Book
When CBT holders sell to exit, it **benefits the ecosystem**:
More sell orders = deeper order book for new lenders
Trading activity helps establish fair market rates
The buyer of your CBT is essentially a new lender taking over your position. This recycling of positions keeps the market liquid.
## Tax Considerations
Early exit may have different tax implications than holding to maturity. Consult a tax professional for your jurisdiction.
Potential considerations:
* **Realized gain/loss**: Selling crystallizes your position
* **Short vs long-term**: Depends on holding period
* **Interest vs capital gain**: Treatment may vary
## Comparison: Exit Methods
| Method | Speed | Price Control | Collateral | Best For |
| ---------------- | ---------- | -------------- | ---------- | -------------- |
| Limit sell | Variable | High | None | Patient exits |
| Market sell | Instant | None | None | Urgent exits |
| Hold to maturity | Fixed date | Guaranteed \$1 | None | No exit needed |
## FAQs
Yes. CBT is divisible. Sell any amount up to your full balance.
If limit order doesn't fill, you can:
* Lower your price
* Wait longer
* Cancel and hold to maturity
* Try market order
Standard protocol fees apply (0.1% of transaction). No penalty for early exit.
Yes. Sell CBT, receive stablecoins, place new lend order at desired rate. Common strategy when rates rise.
Auto-rollover is tied to CBT ownership. If you sell all your CBT, there's nothing to roll over. The buyer's settings apply to their new position.
Access the dashboard to view and exit positions