What this is
The product’s terms set out an explicit early-exit penalty whose structure imposes a real monetary loss: a percentage haircut on principal, a fixed number of days of forfeited interest, or a tiered fee schedule indexed to exit timing. This differs from a flexible-redemption delay (time cost only) and from a closed lockup (action blocked). When this trap fires, an early exit destroys nominal value. Among headline-APR products, this category carries the most direct cash impact.
What it means for you
An early exit at any point in the holding period costs cash, not time. A typical structure: a 15% fee for redemption within 7 days, 1.5% within 8 to 30 days, free thereafter. Such terms convert a "7-day high APR" marketing line into a de facto 30-day lockup with a cash penalty attached. Treat the penalty-clearance date, not the marketing-page minimum lockup, as the effective minimum holding period.
In practice
A CEX 30-day USDT fixed-term product: a 15% fee on redemption within 7 days, 1.5% within 8 to 30 days, free thereafter. Any redemption inside 30 days inflicts a direct loss on principal. The marketing page typically leads with a "7-day high APR" line, but the earliest no-cost exit point is day 31.