Redemption Process

Strategic Redemption

The redemption system balances user needs with protocol stability through dynamic capacity management. Concurrent redemptions are generally limited to approximately 30% of total supply to prevent disruptive position unwinding and maintain optimal strategy positioning. This capacity limit is subject to adjustment based on several factors including total Assets Under Management (AUM), current market liquidity conditions, strategy deployment levels, and overall market volatility.

When initiating redemption, users deposit msUSD to start a sophisticated process including position unwinding, asset conversion, and cross-chain transfer. After a 7-day cooldown period—essential for responsible position management—users receive USDC based on the current coverage ratio.

The protocol reserves the right to temporarily modify redemption parameters during exceptional market circumstances to preserve overall system stability and protect all users' interests. Any such modifications will be clearly communicated through official channels.

For immediate liquidity needs, secondary market trading offers faster execution than the redemption process.