Bond issuer may redeem bonds before the stated maturity date. In that case, bond issuer could lose some of interest already stated at start. Following the next steps, the bond issuer may repay the bond early.
Add the borrowing voucher and borrowing cryptocurrencies in Hipo. When protocol affirms the reimbursement, bond issuer may redeem the collateral. The amount of interest payable to bond issuer would be automatically calculated and transferred to bond issuer’s account.
Claim Investment Before Maturity Date
Bond holder may get back investment before bond stated maturity date. Bond holder could follow next steps to claim the repayment.
First, the bond holder needs to settle the accrual interest. Then reset bond period and trade in bond market to get back the investment. Notice that the acceptable reset periods are 5 days, 10 days, 15 days, 30 days and 45 days and 60 days.
For example, a bond buyer purchased a share of 60 days USDt bond and hold it for 20 days. Therefore, there are 40 days remaining until the maturity date. The accounting period of interest is only 15 days. To get back the cryptocurrencies, the bond buyer needs to reset the period to 45 days and sell the bond in trading market.