How Payment Schedules Work

Your payment schedule defines when payments occur, how much each payment requires, and how each installment progresses your contract toward completion.

Understanding your schedule reduces uncertainty. You know the due dates, amounts, and completion timeline from activation.

What a Payment Schedule Contains

When you create an LTO contract, the platform generates a complete payment schedule before you sign. This schedule shows:

Every payment date from first installment to final payment.
Every payment amount — fixed for the contract duration.
Running equity percentage — your ownership progression after each payment.
Remaining balance — outstanding obligation at any point.
Completion date — the projected date ownership transfers, subject to full payment performance.

Contract terms remain as defined at activation.

Payment Frequency Options

Weekly Payments

Payments process every seven days from your contract start date.

Example:
Contract starts: Monday, March 3, 2026
Payment 1 due: Monday, March 10, 2026
Payment 2 due: Monday, March 17, 2026
Payment 3 due: Monday, March 24, 2026

This pattern continues until the final installment.

Monthly Payments

Payments process on the same calendar date each month (or closest valid processing date where required).

Example:
Contract starts: March 3, 2026
Payment 1 due: April 3, 2026
Payment 2 due: May 3, 2026
Payment 3 due: June 3, 2026

This pattern continues until the final installment.

Comparing the Two

Weekly vs Monthly on a 12-month BTC contract:

Weekly: 52 smaller payments
Monthly: 12 larger payments

Both follow the same contractual structure. Total obligation is determined by contract terms, not payment frequency.

How Automatic Payments Work

The Process

Automatic payments are enabled by default. The platform attempts to process your installment on the scheduled date.

What Happens on Payment Day

The system checks wallets in priority order:

USDT in LTO wallet
USDC in LTO wallet
USDT in FUNDING wallet
USDC in FUNDING wallet

If sufficient funds exist across available sources, payment processes automatically.

Payment Day Timeline

48 hours before: Reminder notification sent to your registered email.
24 hours before: Additional reminder if balance appears insufficient.
Payment day: System attempts processing at scheduled time.
After processing: Confirmation notification sent. Transaction appears in history.

Manual Payment Option

You may disable automatic payments in account settings and initiate payments manually before due dates.

Manual payment requires timely action. Missed due dates may result in late fees or contract consequences as defined in your agreement.

What Happens If a Payment Fails

Common Causes

Insufficient balance across eligible wallet sources.
Account restrictions.
Technical issues during processing.

Failed Payment Response

Immediate notification: Platform alerts you to the failed payment.
Grace period: Defined in your contract terms.
Late fees: Applied according to contract terms after the grace period.
Repeated failures: May result in contract termination as defined in your agreement.

Resolution Steps

Add sufficient funds to your wallet.
Navigate to your active contract.
Initiate manual payment.
Confirm successful processing.
Verify transaction in payment history.

Timely resolution reduces risk of additional fees or contract impact.

Reading Your Payment History

What Each Entry Shows

Every processed payment displays:

Date and time processed.
Amount processed.
Funding source.
Status (Confirmed, Pending, Failed).
Cumulative total paid.
Equity percentage after payment.

Using Payment History

Payment history supports:

Personal verification.
Financial documentation.
Support reference.
Progress tracking.

Payment Amounts Explained

What Each Payment Covers

Each installment includes:

Principal reduction — decreases remaining obligation.
APR component — financing cost defined in contract.
Insurance component — asset protection allocation where applicable.

These combine into a single fixed installment amount.

Fixed Throughout

Your installment amount remains fixed as defined at activation. The platform calculates the full payment structure at the start of the contract.

Payment Schedule and Equity

Each Payment Progresses Ownership

Each installment increases your equity percentage.

Example — 12-Month Contract:

Asset: 1 BTC at $68,000
Down payment: 35% ($23,800)
Monthly installment: $1,850

Payment → Equity Progression:

Down payment: 35% equity
Month 1: 40% equity
Month 3: 50% equity
Month 6: 65% equity
Month 9: 80% equity
Month 12: 100% equity → Ownership transfers

Each completed payment advances equity. Contract termination may affect ownership transfer.

No Reversible Progress (Unless Termination Occurs)

Equity increases with each completed payment. Termination provisions are defined in your contract terms.

Planning Around Your Schedule

Budget Alignment

Before creating a contract, ensure your payment frequency and amount align with your income timing.

Example:

If income arrives mid-month, schedule payment shortly after to allow processing buffer.

Alignment reduces risk of failed payments.

Buffer Maintenance

Maintaining additional stablecoin balance beyond your next scheduled payment helps protect against:

Delayed income
Unexpected expenses
Conversion delays
Network processing times

A buffer reduces the risk of missed payments.

Completion Planning

Your projected final payment date is defined at activation.

Before completion, consider:

Whether to withdraw the asset
Whether to initiate a new contract
How to manage the asset post-completion

Planning ahead ensures a smooth transition from active contract to full ownership.