> For the complete documentation index, see [llms.txt](https://docs.nftfy.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nftfy.org/english/products/nftfy-fractionalizer/how-it-works/1.-fractionalize.md).

# 1. Fractionalize

The user stakes the NFT on our smart contracts, sets the exit price and generates 1,000,000 fractions pegged to that NFT.

The Fractionalization process happens in a decentralized way and is guaranteed by software. It is a simple procedure that only requires the user to set the cryptocurrency and the value of the Exit Price. **The Exit Price is a simple rule that represents the maximum amount someone needs to pay to redeem the NFT.** After that, the NFT is staked in the smart contract, and ERC20 compatible fractions are generated.

You can set an extremely high exit price, hoping someone will pay it one day or intending to hold the NFT. Or a reasonable price if you're willing to monetize it faster.


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