Riddles, brain puzzles and mathematical problems

[BAndrew]

A link can be both horizontal and vertical. The chain in this image has 7 links (not counting the two at the edge of the picture).

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@Romulator
You are almost there! Peter can receive change as long as the inn keeper has enough links to give him. That doesn't count as paying in advance.

In fact you solved it. But he doesn't need to make three cuts to achieve this strategy. Figured out why?

PS: By one cut I mean one removal of a link.