# 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.

***


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.openeden.com/hybond/redemption.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.