NO

Problem:
 *(X,+(Y,1())) -> +(*(X,+(Y,*(1(),0()))),X)
 *(X,1()) -> X
 *(X,0()) -> X
 *(X,0()) -> 0()

Proof:
 Unfolding Processor:
  loop length: 2
  terms:
   *(X,+(Y,1()))
   +(*(X,+(Y,*(1(),0()))),X)
  context: +([],X)
  substitution:
   X -> X
   Y -> Y
  Qed