# Redemption

### Redemptions

#### Overview

Whitelisted investors burn HYBOND tokens in exchange for **USDC**. All redemption requests enter a **withdrawal queue** and are processed in First-In-First-Out (FIFO) order. Vault admins liquidate the underlying fund off-chain to bring USDC liquidity back on-chain to meet redemptions.

#### Redemption Formula

```
num_USDC = (num_HYBOND * exchangeRate) - txFee
```

#### Withdrawal Queue

Redemptions are queued by default and processed via the `processWithdrawalQueue` smart contract method. Queue processing follows a strict **FIFO** model.

#### Redemption Rules

| Level | Rule                             | Description                                        |
| ----- | -------------------------------- | -------------------------------------------------- |
| User  | Whitelisted                      | Wallet address must be whitelisted                 |
| User  | Minimum Withdrawal Amount        | Redemptions must meet the minimum withdrawal limit |
| OED   | Max Withdrawal per Epoch per NAV | Capped at **10% of HYBOND NAV** per valuation day  |

#### Settlement Timeline (Redemption)

| Day | Time (Ireland) | Time (SGT) | Action                                                                     |
| --- | -------------- | ---------- | -------------------------------------------------------------------------- |
| 0   | 7:00 AM        | 3:00 PM    | Tokenized shares redemption request received                               |
|     | 8:00 AM        | 4:00 PM    | OED cut-off recorded                                                       |
|     | 9:00 AM        | 5:00 PM    | BNY SDHYBF redemption request triggered                                    |
|     | 12:00 PM       | 8:00 PM    | BNY SDHYBF cut-off recorded                                                |
|     | 10:00 PM       | —          | **NAV snapshotted; USD amount to OED confirmed**                           |
| 3   | 2:00 PM        | 10:00 PM   | Wire received by OED                                                       |
| 4   | 2:00 AM        | 10:00 AM   | USDC fees claimed; Net USDC delivered to investor; Tokenized shares burned |

#### Processing Time

Redemption processing time is **T+4** Ireland and US business days.

***