BSIP70: Harmonizing early loan closure

bsip-0070.md

@@ -128,7 +128,7 @@ Both potential lenders and potential borrowers can place offers on the Loan Orde
 |<div id="loan-offer-margin-call-collateral-ratio"/>Margin call collateral ratio (MCCR)|The _minimum_ collateral ratio below which [a margin call of the loan is initiated](#process-margin-call-initiation).  MCR &ge; MCCR &ge; 1|
 |<div id="loan-offer-margin-call-duration"/>_Maximum_ duration of margin call|The _maximum_ duration of a [margin call](#process-margin-call), if one is necessary, after which a [portfolio confiscation](#process-portfolio-confiscation) will be triggered.|
 |<div id="loan-offer-tradable-asset"/> Asset type to trade against (Tradable asset)|The asset type that the lender permits the borrower to trade against.  This restriction protects the lender from exit scam trading.|
-|<div id="loan-offer-minimum-duration"/>_Minimum_ duration of loan|The _minimum_ duration of the loan that the lender is willing to accept.  The loan may still be closed early during Stage 5.|
+|<div id="loan-offer-minimum-duration"/>_Minimum_ duration of loan|The _minimum_ duration of the loan that the lender is willing to accept.|
 |<div id="loan-offer-maximum-duration"/>_Maximum_ duration of loan|The _maximum_ duration of the loan that the lender is willing to accept|
 |<div id="loan-offer-interest-rate"/>Minimum interest rate|The _minimum_ daily interest rate that the lender is willing to accept|
 |Expiration date|Expiration date of the offer|
@@ -146,7 +146,7 @@ Borrow offers contain the following parameters:
 |<div id="borrow-offer-margin-call-collateral-ratio"/>Margin call collateral ratio (MCCR)|The _maximum_ collateral ratio below which [a margin call of the loan is initiated](#process-margin-call-initiation).  MCR &ge; MCCR &ge; 1|
 |<div id="borrow-offer-margin-call-duration"/>_Minimum_ duration of margin call protection|The _minimum_ duration of a [margin call](#process-margin-call), if one is necessary, after which a [portfolio confiscation](#process-portfolio-confiscation) will be triggered.|
 |<div id="borrow-offer-tradable-asset"/> Asset type to trade against (Tradable asset)|The asset type that the borrower can trade against.|
-|<div id="borrow-offer-minimum-duration"/>_Minimum_ duration of loan|The _minimum_ duration of the loan that the borrower is willing to accept.  The loan may still be closed early during Stage 5.|
+|<div id="borrow-offer-minimum-duration"/>_Minimum_ duration of loan|The _minimum_ duration of the loan that the borrower is willing to accept.|
 |<div id="borrow-offer-maximum-duration"/>_Maximum_ duration of loan|The _maximum_ duration of the loan that the borrower is willing to accept|
 |<div id="borrow-offer-interest-rate"/>_Maximum_ interest rate|The _maximum_ daily interest rate that the borrower is willing to accept|
 |Expiration date|Expiration date of the offer|
@@ -235,11 +235,11 @@ This loan portfolio shall then become available for [margin trading by the borro
 
 #### <div id="loan-duration" /> Effective Dates of the Loan
 
-The start date of the loan shall be when the loan is matched.  The end date of the loan shall be calculated by adding the loan duration to the start date.  The loan may be closed:
+The start date of the loan shall be when the loan is matched.  The _earliest end date_ of the loan shall be calculated by adding the minimum loan duration, that is compatible with the matched [loan offer](#loan-offer-minimum-duration) and [borrow offer](#borrow-offer-minimum-duration), to the start date.  The _latest end date_ of the loan shall be calculated by adding the maximum loan duration, that is compatible with the matched [loan offer](#loan-offer-maximum-duration) and [borrow offer](#borrow-offer-maximum-duration), to the start date.  The loan may be closed:
 
-- [by the borrower before the end date](#process-loan-closure),
-- [by the smart contract when the end date arrives](#process-loan-expiration), or
-- [by the smart contract before the end date if the loan portfolio is undervalued](#process-margin-call-initiation).
+- [by the borrower](#process-loan-closure) on or after the _earliest_ end date and before the _latest_ end date,
+- [by the smart contract when the _latest_ end date arrives](#process-loan-expiration), or
+- [by the smart contract any time before the _latest_ end date if the loan portfolio is undervalued](#process-margin-call-initiation).
 
 #### <div id="offer-filling"/> Filling of Loan Offer
 
@@ -467,7 +467,7 @@ Bob may withdraw bitBTC up to this limit because the balance of bitBTC, 0.025, e
 
 ## <div id="process-loan-closure-initiation" /> Stage 5a: Initiation of Loan Closure by Borrower
 
-A borrower may close an outstanding loan position _any time before loan expiry_ by having a [sufficient balance of the borrowed asset type](#process-loan-closure) in the loan portfolio and then initiating a loan closure with the appropriate parameters.
+A borrower may close an outstanding loan position _any time between [the earliest end date and the latest end date](#loan-duration)_ by having a [sufficient balance of the borrowed asset type](#process-loan-closure) in the loan portfolio and then initiating a loan closure with the appropriate parameters.
 
 |Initiation of Loan Closure Parameter|Description|
 |-|-|