How Much Yield Will Be Deducted for Early Redemption of Binance Locked Products

The cost of early redemption for locked products is not a partial deduction of yield—it is the forfeiture of all distributed and undistributed rewards. The principal you ultimately receive will have all rewards already distributed to your account during the lock-up period deducted from it, and you will also forfeit any remaining undistributed yield. In simple terms: you can get your principal back early, but the yield portion—including what has already been credited—will not be retained.

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Below are the specific deduction rules and step-by-step verification procedures.

Prerequisites

1. You have subscribed to a Binance Simple Earn locked product (fixed/locked product), and the product has not yet matured.

2. You can see this position on the 【Earn】 or 【Simple Earn】 page.

3. You intend to redeem this asset early.

Step 1: Confirm Whether You Are Redeeming a "Locked Product" or a "Flexible Product"

The early redemption rules for different product types are completely different.

Scenario A: Flexible Products

• No lock-up period, redeemable at any time, no fees or yield deductions apply.

• Assets are immediately returned to your spot wallet upon redemption.

Scenario B: Locked/Fixed Products

• Has a fixed lock-up period (e.g., 7 days, 30 days, 90 days, etc.), and early redemption triggers a penalty mechanism.

• Penalty details: All earned and accrued rewards are forfeited, not just a partial deduction.

Completion criterion: Confirm whether the product you hold is "Flexible" or "Locked".

Step 2: Understand the "Deduction" Logic for Early Redemption

For locked products, the "deduction" for early redemption is not a proportional deduction—it is a full clawback:

1. The principal will be returned to your spot wallet.

2. Rewards already distributed to your account (in whatever form they were issued) will be deducted from the principal.

3. All undistributed rewards are voided and you have no right to them.

Specific breakdown:

• If rewards have already been distributed to your spot or earn wallet during the lock-up period, these amounts will be clawed back—an equivalent amount will be deducted from the principal when it is returned.

• This includes daily APR rewards, as well as any Launchpool or Megadrop rewards earned during the participation period. Once early redemption is initiated, any additional rewards earned during the lock-up period will be forfeited.

• The lossAmount field in the API query interface returns the interest amount lost due to early redemption.

Completion criterion: Be able to distinguish between "principal deduction" and "forfeiture of future yield".

Step 3: Verify the Specific Processing Time

Early redemption is not an instant operation; you need to wait:

• Assets are returned to your spot wallet within 48-72 hours.

• Delays may occur under extreme market volatility, network latency, or high volumes of simultaneous user requests.

Completion criterion: Confirm that the redemption has been submitted and understand the approximate time of arrival.

Step 4: Check Specific Redemption Records

If you have already made an early redemption, you can view the detailed breakdown of deducted yield through the following methods:

1. Go to 【Wallet】 → 【Earn】 or 【Simple Earn】.

2. Find 【Redemption History】 or 【History】.

3. Within the records, check:

   • type field: EARLY (early redemption) or AHEAD (early redemption type)

   • lossAmount field: the yield amount lost due to early redemption

   • If it has been credited, the status will display PAID.

Completion criterion: Be able to see the specific deducted amount and credit status in the records.

Common Reasons for Misunderstanding

Misconception: Thinking that "yield deduction" only deducts a portion, and the rest can be kept

Many people assume that early redemption deducts yield on a proportional basis, but the actual rule is "full forfeiture." The yield on locked products is packaged as a whole—either you hold until maturity and receive everything, or you redeem early and receive nothing.

Risk Warning

• The forfeiture scope includes already distributed rewards: Not only are future yields voided, but rewards already credited to your account will also be deducted from the principal.

• Principal safety: The principal itself is not subject to additional penalties; only the yield portion is deducted. The principal you receive is at least the original amount minus distributed rewards.

• It is recommended to use funds not needed in the short term for locked products: If funds may be needed temporarily, prioritize flexible products over locked products.

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How to Confirm Completion of the Operation

After submitting the redemption, check the status in 【Earn】 → 【Redemption History】. When the status changes to PAID (redemption successful) and the principal has arrived in your spot wallet, the operation is complete.

If it has not arrived but more than 72 hours have passed, check the redemption status through the Customer Service Center and provide the redeemId to customer support for follow-up.