Redeem

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Overview

Redeem refers to exiting a Vault position according to the applicable Vault rules. Redeem is separate from Withdraw.

• Redeem exits a Vault position
• Withdraw transfers available USD Balance to a connected wallet
• Redeem may convert Vault Shares into USD Balance or another redeemable app balance, depending on platform and Vault rules
• Redeem conditions vary depending on the Vault
• Early Redeem may be restricted, delayed, or subject to penalties

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Redeem Flow

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Redeem Process

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Step 1 — Request

Users start a Redeem request from their portfolio. A request may include:

• Selected Vault position
• Full or partial Redeem amount
• Number of Shares to redeem
• Confirmation of Vault rules
• User confirmation before submission

The available Redeem options may differ depending on the Vault.

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Step 2 — Eligibility Check

The system verifies whether the position is eligible for Redeem. Eligibility checks may include:

• Lock-up conditions
• Minimum holding period
• Vault-specific rules
• Position status
• Minimum remaining position requirements
• Supported Redeem windows
• Account, security, or compliance restrictions

If a position is not eligible, the Redeem request may be rejected, delayed, or restricted.

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Step 3 — Valuation

The system calculates or references the value of the Vault position according to the applicable Vault rules. Valuation may depend on:

• Share Price
• Number of Shares being redeemed
• Vault performance
• Settlement timing
• Asset valuation
• Fees
• Liquidity conditions
• Other Vault-specific accounting rules

Because Share Price may rise or fall, the redeemable value may be higher or lower than the original deposit amount.

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Step 4 — Fees and Penalty Calculation

If applicable, fees or penalties are calculated. Possible adjustments may include:

• Early Redeem penalties
• Performance fees
• Strategy unwind costs
• Liquidity impact adjustments
• Network or operational costs
• Other Vault-specific fees

Fees and penalties may reduce the final amount credited after Redeem.

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Step 5 — Settlement

The final amount is settled according to Vault rules. Settlement may include:

• Calculating net redeemable value
• Reducing or burning redeemed Shares
• Applying fees or penalties
• Updating the user’s Vault position
• Crediting the resulting amount to USD Balance or another app-level redeemable balance, depending on platform rules

Settlement timing may vary by Vault and may not be instant.

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Full and Partial Redeem

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Full Redeem

A full Redeem exits the entire Vault position. A full Redeem may:

• Redeem all Shares in the selected Vault position
• Close the user’s exposure to that Vault
• Apply applicable fees, penalties, or adjustments
• Credit the resulting amount according to platform and Vault rules

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Partial Redeem

A partial Redeem exits only part of the Vault position. A partial Redeem may:

• Redeem only selected Shares or a selected amount
• Reduce the user’s exposure to the Vault
• Leave remaining Shares active
• Allow the remaining position to continue participating in Vault performance
• Affect future Rewards, if applicable

Partial Redeem rules may differ by Vault.

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Lock-Up Conditions

Some Vaults may enforce lock-up periods or minimum holding periods. Lock-up conditions may include:

• No Redeem during the lock-up period
• Restricted Redeem during certain windows
• Early Redeem penalties
• Minimum holding periods before Redeem is allowed
• Delayed processing until the next available Redeem window

Users should review lock-up conditions before depositing into a Vault.

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Penalties and Adjustments

Penalties or adjustments may apply under certain conditions. Examples include:

• Early exit fees
• Strategy unwind costs
• Liquidity impact adjustments
• Operational fees
• Network costs
• Vault-specific adjustment factors

Penalty structures vary by Vault and may change according to Vault rules.

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Settlement Timing

Redeem requests may not settle instantly. Settlement timing may depend on:

• Vault structure
• Strategy execution timing
• Liquidity availability
• Settlement windows
• Valuation timing
• Operational processing
• Security checks
• Compliance review
• Network conditions

Some Redeem requests may be processed automatically, while others may require manual review or delayed settlement.

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Relationship to Share Price

Share Price may play an important role in Redeem calculations. Redeem value may be affected by:

• Share Price at the applicable valuation time
• Number of Shares being redeemed
• Vault performance
• Fees and penalties
• Settlement timing
• Vault-specific accounting rules

If Share Price has increased, the estimated redeemable value may increase.
If Share Price has decreased, the estimated redeemable value may decrease. This does not guarantee any profit or final redeem amount.

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Relationship to Rewards

Depending on the Vault structure, Rewards may be handled separately from Redeem. For example:

• Some Vaults may credit periodic Rewards to USD Balance
• Some Vaults may reflect performance mainly through Share Price
• Some Vaults may use a combination of Share Price movement and Rewards
• Redeeming Shares may reduce future Reward eligibility
• Pending Rewards may be subject to Vault-specific rules

Users should review each Vault’s rules to understand how Redeem affects Rewards.

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Relationship to Withdraw

Redeem and Withdraw are different actions.

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Important Considerations

• Redeem rules vary per Vault
• Redeem may not be available at all times
• Early Redeem may be restricted or penalized
• Final value depends on Share Price, Vault performance, fees, penalties, liquidity, and timing
• Negative performance may reduce redeemable value
• Partial Redeem affects remaining exposure
• Redeem may reduce future Rewards, where applicable
• Settlement may be delayed
• Security, compliance, or operational checks may apply
• Redeem does not automatically mean Withdraw to wallet

Users should review the specific Vault details, risk disclosures, and applicable terms before submitting a Redeem request.

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Summary

Redeem lets users exit Vault positions according to Vault-specific rules. Redeem may involve:

• Selecting a Vault position
• Redeeming all or part of the user’s Shares
• Calculating value based on Share Price and Vault rules
• Applying applicable fees or penalties
• Settling the resulting amount into USD Balance or another app-level balance
• Reducing or closing exposure to the selected Vault

Redeem is separate from Withdraw. To move available app balance to a connected wallet, the user must complete a Withdraw request where applicable. Every Redeem is subject to Vault-specific rules, market conditions, fees, liquidity, settlement timing, and operational controls.