Redemption Flow

When you're ready to exit your position, Sova's structured redemption process ensures a secure and transparent return of capital - backed by on-chain records and off-chain execution.

1. Submit Withdrawal Request

You initiate a redemption request via the Sova interface.

• This request is logged in the strategy contract

• Your tRWA tokens remain in your wallet until funds are ready

2. Off-Chain Liquidity Preparation

During the defined redemption window:

• The issuer initiates withdrawals from the off-chain strategy

• Assets are liquidated or rotated based on the strategy’s liquidity terms

• Fiat proceeds are sent to the issuer’s wallet and prepared for on-ramping

3. Funds Returned On-Chain

The issuer reconverts fiat to crypto (USDC or BTC) and deposits it into the strategy contract.

• The deposit is matched against pending redemption requests

• Timing depends on strategy type—ranging from T+2 days to 30+ days for less liquid positions

4. Token Burn & Payout

Once the funds are available:

• You burn your tRWA tokens in the app

• In return, you receive the underlying crypto (USDC or BTC), including any accrued yield

⏳ Redemption Timing Redemption windows and liquidity timelines vary by strategy. Faster access options are available for shorter-term products, while longer-duration strategies may require more time to unwind.