Legal analysis: the maximum penalty for repayment cannot exceed 20% of the actual loss, because in China, such penalty is a kind of compensation for the damage suffered by the party concerned, and it is not really intended to punish him, so such penalty is not too high, otherwise it can be adjusted.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 577 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 578 Where a party clearly expresses or shows by his own actions that he will not perform his contractual obligations, the other party may require him to bear the liability for breach of contract before the time limit for performance expires.

Article 579 If one party fails to pay the price, remuneration, rent or interest, or fails to perform its debts in other currencies, the other party may demand a notice.

Article 584 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, thus causing losses to the other party, the amount of damages shall be equivalent to the losses caused by the breach of the contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.