KFe0.8Ag1.2Te2 is made of 2x2 squares of Fe atoms, upon lowering temperature the system spontaneously undergoes a transition that breaks the fourfold rotational symmetry. A likely candidate that drives such symmetry breaking is the magnetic interactions within the 2x2 Fe blocks. Here we propose to study the magnetic interactions within these 2x2 blocks, and hope to shed light on similar transitions that are present in iron-based superconductors.