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Convert a financed position into a fully funded claim

Debt-free finality does not predict an event outcome or alter venue settlement. It describes the condition in which a leveraged outcome-token position no longer has an outstanding loan before the claim enters its finality interval.

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The debt-clearing condition

Let q be the held token quantity, K available cash, and D outstanding debt. For each venue-admissible sale quantity x, the reference method evaluates a conservative lower bound B(x) for settled proceeds. A sale is debt-clearing only when: K + B(x) ≥ D If one or more quantities satisfy the condition, the method selects the smallest feasible quantity. The residual q − x remains an event claim. Only settled proceeds applied to the loan ledger can establish the debt-free state.

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What it does not mean

  • A matched order is not repayment.
  • A proposed outcome is not final payout.
  • A debt-free claim is not a promise of a particular event result.
  • A reference condition is not a guarantee that a venue will provide executable liquidity.
The final payout remains determined by the venue’s authoritative resolution process.