# Sale rules

## Sale Rules for Issuer 

### Repay rule 

* Issuers must repay face assets within 7 days before the maturity date. 
* If the repayment is not completed within 7 days before the maturity date, issuers’ bonds will be liquidated, which means the collateral will be distributed to bondholders. 

### Bond maintaining rule 

* To maintain the bond, issuers should ensure that the LTV is less than or equal to 65%. 

### Liquidate rule 

* The bond will be liquidated when its LTV reaches 80%. 
* When a bond is liquidated or matured, you can no longer trade it on Bond Exchange. 
* The system will distribute the issuer’s collateral to the holder as a percentage of holding. 

### Claim Assets rule 

* Issuers are able to claim assets when bonds are bought. 
* Issuers must pay issue fee when claiming asset. 
* Use face assets to purchase the bonds with the issue price. 
* Bonds will be on-sale when it reaches the on-sale phase. 
* Bonds will be active once sold out or at an active date. Therefore, the maturity date may be sooner than expected. 
* When bonds are liquidated, you can claim the underlying assets of bond issuers even though it has not reached the maturity date. 
* In case the issuers do not pay investment plus interest when bonds reach maturity, the bond will be liquidated, and their collaterals will be used for payment to investors. 
* Exchange your bonds on tab [Exchange](https://position.exchange/bond-exchange/PBOND-002/POSI?type=bond) after bonds are active.
* In normal cases, bondholders can claim face assets when the bond reaches maturity.

## Sale rules for holders 

* Use face assets to purchase bonds 
* Bonds can be sold when it reaches the on-sale phase 
* Bonds are only active once sold out or at an active date 
* Bonds can be liquidated when the price reaches the liquidation price. 
* In this case, you can claim underlying assets of bond issuers even though it has not reached the maturity date 
* Exchange your bonds on tab [Exchange](https://position.exchange/bond-exchange/PBOND-002/POSI?type=bond) after bonds are active 
* In case the issuers do not pay investment plus interest when bonds reach maturity, their collaterals will be used for payment to investors 
* YTM is the fixed interest rate of a bond that you are guaranteed to receive at the maturity date