Redemptions allow investors to exit a strategy by exchanging their shares for USDT. To ensure fairness, protect the strategy’s stability, and prevent abuse, GRVT enforces the following rules:
Redemption Timing Window
Each strategy sets a minimum and maximum redemption period.
During the minimum period, the request is inactive.
After that, it becomes eligible for processing.
If it is still unprocessed by the maximum period, the protocol enforces redemption automatically.
Purpose: Gives managers time to unwind positions safely while ensuring investors are not locked out indefinitely.
Auto-Redemption Conditions
A strategy can auto-fulfill redemption requests if it has safe excess capital based on an auto redemption barrier.
Auto Redemption Barrier (ABR)
The Auto Redemption Barrier is a safety multiplier set by a manager that determines how conservatively capital is reserved before allowing automatic fulfillment of redemption requests. It adjusts how much of the initial margin must remain untouched to maintain risk thresholds.
A lower ABR (e.g., 0.8) makes it easier to auto-redeem by requiring less margin buffer.
A higher ABR (e.g., 2.0) is more conservative, requiring more margin to be set aside before redemption is allowed.
A autoRedemptionBalance that is greater than 0 can process redemptions without manager intervention.
autoRedemptionBalance = availableBalance - initialMargin * autoRedemptionBarrier
Redemption Queue
Redemption requests enter a queue when submitted. They are not processed immediately but follow an ordered system based on eligibility and priority. In particular, requests are prioritized using a hybrid model:
FIFO(First in First Out) by default
Smaller redemptions may be pulled ahead to reduce market impact based on predetermined logic
Urgent status triggers at 90% of the maximum redemption period, after which requests follow strict FIFO
Purpose: Fairly balances time-based priority with system efficiency and investor protection.
Redemption PnL Treatment
During the redemption window, investors do not receive any new profits but continue to bear losses.
Purpose: Prevents gaming of the system by locking in upside while avoiding downside or fees.