> ## Documentation Index > Fetch the complete documentation index at: https://docs.axient.app/llms.txt > Use this file to discover all available pages before exploring further. # Debt-free finality > The minimum-sale mechanism and the condition for ending leverage. # Convert debt into a fully funded claim. Debt-free finality is the core Axient mechanism. It does not predict an event outcome or change a venue’s settlement. It converts a leveraged outcome-token position into a debt-free spot position before the claim enters its non-tradable finality interval. ## The hard-flat condition At the beginning of hard-flat, let `q` be the held token quantity, `K` free cash, and `D` outstanding debt. The mechanism cannot know future fills or settled proceeds when it chooses an order. It therefore evaluates each venue-admissible sale quantity `x` against a conservative lower envelope of future settled proceeds and an upper debt bound over the settlement horizon. A planned sale quantity can be certified only when: `K + B(x) ≥ D` If at least one quantity is certified, Axient selects the minimum feasible planned sale `x*`. The residual position is `q − x*`; any excess cash after repayment remains in the position account. The realized post-settlement minimum is an audit quantity, not an instruction chosen after the fact. ## Why the minimum sale matters The rule has a narrow, auditable objective: repay debt while retaining the maximum residual token quantity among debt-clearing sale choices. It does **not** claim to maximize a user’s terminal wealth for every possible event outcome. The mechanism must use settled proceeds. A submitted, acknowledged, or matched order does not change the debt-free state until the venue’s asset and cash transfers are confirmed and the cash is applied to the loan ledger. ## The conditional result The accompanying research establishes that, if debt-clearing proceeds are executable, settle, and are applied before the venue becomes non-tradable, the post-conversion debt is zero. Under those conditions, later payout variation and dispute duration no longer create lender credit exposure for that loan. This is a statement about the loan channel after successful conversion. It does not remove the user’s remaining outcome exposure or protect against a failed hard-flat, venue failure, custody failure, or an unavailable market. No backend policy can guarantee zero shortfall on every path when a market can close prematurely or executable liquidity can disappear. These are explicit failure boundaries in the specification. ## Read next Learn how proceeds, debt, and buffers are accounted for. Follow the lifecycle from reduce-only to redemption.