# What happens at maturity? One of the critical components of Notional Finance, fCash has a maturity date attached to it and the value of fCash changes as time passes. But what happens at maturity? Are borrowers liquidated? Are LPs kicked out of that pool? A 🧵 explaining settlements at maturity \--- fCash markets make fixed-rate lending and borrowing possible. Here is a quick refresher on fCash markets: \[LINK] At maturity, all fCash is converted to the corresponding cToken. Notional calculates the value of your +ve or -ve fCash denominated in Cash and converts them to +ve or -ve cTokens. An example ahead ⬇️\ \---\ Assume a Lender with 100 +ve fDAI. The value of 1 fDAI at maturity will be equal to 1 DAI and the +ve fDAI is converted to +ve cDAI depending on the cDAI / DAI exchange rate. Here is why the value of 1 fDAI becomes similar to 1 DAI as we approach maturity: \[LINK] If the exchange rate on cDAI/DAI is 0.1, your 100 +ve fDAI will get converted to 1000 cDAI which you can withdraw anytime you like or can earn a variable supply rate offered by Compound. \--- If you are Borrowing, and hold 100 -ve fDAI, your 100 -ve fDAI will get converted to -1000 cDAI with the same exchange rates discussed in the earlier tweets. Here the -1000 cDAI represents an outstanding debt (obligation) and it would be worth 100 DAI. If this happens to many borrowers, lenders may not be able to withdraw the DAI they are owed. \--- To solve this problem, Notional V2 allows third parties to force an account with a negative cToken balance to borrow at a penalty rate. The third party acts as a lender and deposits cTokens into the borrower's account to repay their debt. \--- An offsetting pair of positive and negative fCash assets are placed directly in the portfolios of the borrower and the third person (lender). The newly minted fCash would be based on 3-month fCash market exchange rates plus a penalty rate and would mature based on the 3-month fCash market's upcoming maturity date. This ensures that the borrower repays their debt, and the lender receives their due amount with interest. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://diligentdeer.gitbook.io/notional-finance-guide/twitter-threads/what-happens-at-maturity.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.