💸 Redemptions

In this section, we will guide you through the process of performing a redemption, which occurs when an investor wants to sell all or part of their fund units.

1. Register a Redemption Request

1.1. Request a Redemption (as an Investor)

As an investor, if you wish to redeem your fund units:

1. Log in to the platform.
2. Navigate to the "Investments" tab on the left-side menu.
3. Select the investment you want to redeem and click the "Redeem" button.
4. Choose the total amount of units you wish to redeem.
5. Click Confirm and sign the transaction.

Once submitted, the redemption request will be processed after the next NAV calculation event. At that time, the units will be burnt, and the payment for the redemption will be registered in the fund's liabilities, awaiting settlement. The redemption entry also shows the performance achieved on that investment.

1.2. Force a Redemption (as a Manager)

As a manager, you can also force a redemption for an investor. This method is commonly used for off-chain investments or when you need to initiate the redemption without waiting for a request from the investor.

To force a redemption:

1. Navigate to the "Investors > Subscriptions" tab.
2. Find the desired investor, and click "Details" on the right side of their entry.
3. Select "Confirm Redemption Request".
4. Choose the redemption date and the number of units to redeem.

The redemption request will be submitted, and after the next NAV calculation event, the investor’s units will be burned, and their redeeming amount will be added to the fund's liabilities.

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2. Settle Redemption Liability

2.1. On-chain Redemption

An on-chain redemption is treated just like any other liability of the fund. To complete the redemption process, the manager must settle the liability and transfer the redemption amount to the investor. For further guidance, follow the steps outlined in the "Settle Liabilities" section.

2.1. Off-chain Redemption

An off-chain redemption (similar to off-chain subscriptions) is when the liquidity flow doesn't go through the smart contract. Let's imagine an investor receives the payment directly to his bank account or is getting paid in-kind with a transfer of the underlying assets (e.g. stocks).

In this scenario, we need to notify our on-chain fund of this transfer so that we could remove the entry from the liabilities.

1. Navigate to the "Flows > Outflows" tab.
2. Find the desired redemption liability to be settled.
3. Click "Pay" next to the amount.
4. Review and submit the transaction.