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Overview

CBT is fully tradeable. If you need liquidity before maturity, sell your CBT on the order book instead of waiting for redemption.

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Why Trade Positions?

Common reasons for early exit:
  • Need liquidity unexpectedly
  • Better opportunities elsewhere
  • Market rates increased (want to re-lend higher)
  • Changing investment strategy

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Exit Options

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Limit Order Sale

Set your desired price and wait for a buyer.
1

Access Position

Go to your position in the dashboard
2

Click 'Sell CBT'

Select limit order option
3

Set Price

Enter minimum acceptable price per CBT
View theoretical fair value and current market bids to inform your price.
4

Submit

Order enters the book
5

Wait for Match

Receive stablecoins when buyer matches
Pros: Control over exit price Cons: May take time to fill

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Market Order Sale

Exit instantly at current market price.
1

Access Position

Go to your position in the dashboard
2

Click 'Sell CBT'

Select market order option
3

Review Price

See the price you’ll receive
4

Confirm

Instant execution
Pros: Immediate liquidity Cons: May get worse price in thin markets

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Pricing Your Exit

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Theoretical Value

Fair value based on rate and time remaining: 
CBT Fair Value = $1 / (1 + Rate × Time Remaining)

Example: 8% APY CBT with 180 days remaining
Fair Value = $1 / (1 + 0.08 × 0.493) = $0.962

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Market Price

Actual trading may differ from fair value:
  • High sell pressure: Price below fair value
  • High buy pressure: Price at or above fair value
  • Low liquidity: Wider bid-ask spread

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Checking Before Exit

Before selling, review:
  • Theoretical fair value
  • Best current bid
  • Spread between bid and fair value
  • Market depth

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Partial Exits

Sell any portion of your CBT: 
Your position: 10,000 CBT

Options:
- Sell all 10,000 (full exit)
- Sell 5,000 (50% exit)
- Sell 2,000 (partial exit)

Remaining CBT continues to maturity or can be sold later.

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No Collateral Required

Unlike new borrowers who need collateral, CBT sellers don’t need anything extra. The CBT itself is your position.
When you sell CBT, you’re transferring your lending position to a new lender. They take over your claim on the borrower’s repayment.

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Tax Considerations

Early exit may have different tax treatment than holding to maturity. The gain/loss is realized at sale, not maturity. Consult a tax professional.

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Exit Strategies

Need cash nowUse market order. Accept current bid for instant liquidity.Cost: Potential 0.5-2% below fair value in normal markets.

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After Selling

Once your CBT is sold:
  • You receive stablecoins in your wallet
  • Auto-rollover settings no longer apply (no CBT to roll)
  • The buyer inherits the position until maturity

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Example: Early Exit

Scenario: You lent $10,000 at 8% APY for 1 year. After 6 months, you need liquidity. 
Original:
  Lent: $10,000 USDC
  Received: 10,800 CBT
  Rate: 8% APY
  Maturity: 365 days

At 6 months:
  CBT fair value: ~$0.962
  Position value: 10,800 × $0.962 = $10,390
  Realized gain: $390 (half of expected $800)

Market order exit:
  Best bid: $0.958 (0.4% below fair)
  Receive: 10,800 × $0.958 = $10,346
  Net gain: $346

If held to maturity:
  Would receive: $10,800
  Total gain: $800
Decision: Accept 346gainnowvs.346 gain now vs. 800 in 6 more months.

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FAQs

Standard protocol fee (0.1% of transaction). No penalty for early exit.
Lower your price or wait. Alternatively, hold to maturity and redeem.
CBT is an ERC-20 token. If there’s external liquidity (Uniswap, etc.), you can trade there too.
Fully transferred to the buyer. They receive repayment at maturity.