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# Constant NFT

A Constant NFT is a transferable onchain claim created for one non-zero supplier fill. It gives the current owner a right to supplier principal and interest without giving that owner control over the borrower's Position.

`ConstNFT` is the smart-contract name. This documentation uses **Constant NFT** as the reader-facing term.

## Relationship to a Position

```mermaid
flowchart TB
    P[Position<br/>borrower debt and collateral]
    P --> A[Constant NFT A<br/>supplier claim]
    P --> B[Constant NFT B<br/>supplier claim]
    P --> C[Constant NFT C<br/>supplier claim]
    R[Position repayment] --> E[Constant NFT escrow]
    E --> A
    E --> B
    E --> C
```

Several suppliers can fund one Position. Each non-zero fill creates a separate Constant NFT, while the Position combines the borrower's obligations by debt asset.

Every debt asset has its own Constant NFT collection. Within that collection, each NFT identifies its Position and its place in the sequence of supplier fills for that asset.

## What the NFT Represents

A Constant NFT represents the right to claim:

* principal recorded as repaid for that NFT; and
* supplier interest funded for that NFT.

It does not represent:

* ownership of collateral held by the Position;
* authority to change the borrower, rates, or maturity;
* a claim on any other Position; or
* a guarantee that all interest projected through maturity will be earned.

Because the borrower can repay early, the actual lending duration—and therefore total supplier interest—may be shorter than the original term.

## Recorded Repayment and Claim

Repayment and receipt happen in separate stages:

1. The Position applies the borrower's payment to interest and principal.
2. The supplier portion is recorded and transferred into Constant NFT escrow.
3. The claimable amount is assigned to the relevant Constant NFTs.
4. A claim sends the available amount to each NFT's current owner.

This separation prevents one NFT owner's receiver behavior or a failed transfer from blocking the borrower's repayment or another supplier's accounting.

Anyone may trigger a claim, but the funds always go to the current NFT owner. The caller cannot redirect them.

## Transferability

Transferring a Constant NFT also transfers its unsettled claim to the new owner. The transfer does not:

* modify the Position;
* change the signer of the original Supply Order;
* move the NFT within the FIFO principal queue; or
* create a new loan agreement.

After the transfer, the new owner can receive amounts that become claimable for the NFT, including funds that were already recorded but not yet claimed.

## Final Settlement

Principal can reach zero before every funded amount has been claimed, so finalization follows the claim state rather than debt reduction alone.

Once the Position debt is fully settled and the NFT's final entitlement has been claimed, the Constant NFT can be burned. The protocol's state and events continue to preserve the historical Position and settlement record after the token is no longer an active claim.


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