Unwinding

Issuer redemption locks the position, mints a Receipt NFT that tracks the request, and hands settlement to a provider. The user acts once; everything after the request runs automatically.

For a sale to another buyer instead, see Secondary sales (RFQ).

Requesting an unwind

1. Open the position and review what the exit covers: collateral shares, debt owed, and net equity.
2. Request the unwind. One wallet confirmation locks the position. Compliance is enforced here too, through the market’s credential checks on the vault operations the request performs.
3. Hold the Receipt NFT. The request is now isolated in its own escrow while the redemption runs.

A request can be refused upfront when the position sits inside the protocol buffer (its LTV is too close to the liquidation threshold); reducing leverage first clears the block.

Settlement

The request redeems through the tokenised asset’s own settlement process: the market’s provider fulfils within the redemption cycle (for example T+1 with weekly batches), the fee rate is recorded on the request when it is created, so a later change to the market’s fee does not affect it, and the request stays pending until the cycle completes.

Completion

When the provider fulfils, finalisation repays the debt from the proceeds, deducts fees, and sends the remainder in the base asset to the Receipt NFT holder. The position is released and the escrow closes. If the position turns unhealthy while redeeming, an auction liquidation can reduce its debt first; the request still settles and finalises as normal, and the remainder paid to the Receipt NFT holder is then net of the repaid debt, the fee, and the auction winner’s repay plus bonus, as described in liquidations.