> For the complete documentation index, see [llms.txt](https://sovavault.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sovavault.gitbook.io/docs/sova-for-users/redeeming-and-liquidity.md).

# Redeeming & Liquidity

## How and When You Can Withdraw

Sova's investment products are designed to mirror **traditional fund mechanics** - with scheduled redemption cycles and liquidity gates based on the underlying asset class.

When you're ready to exit your position, Sova provides a **clear, secure path** to redemption.

***

## Redemption Process: Step by Step

### 1. Submit Withdrawal Request

Log in to the Sova app and submit a **redemption intent** for your tRWA tokens.

### 2. Join the Redemption Queue

Your request enters the queue for the **next eligible redemption window**, which varies by strategy.

### 3. Underlying Assets Settled Off-Chain

Yield Curators unwind a portion of the portfolio and return capital in fiat.

### 4. Fiat Converted Back to Crypto

Fiat is converted into **USDC or BTC** via regulated partners and bridged on-chain.

### 5. Receive Payout

Once settlement is complete, you **burn your tRWA token** and receive the corresponding value in USDC or BTC.

***

## Liquidity Tiers by Strategy

Each vault on Sova defines its own **liquidity profile** based on the structure and volatility of its underlying investments.

| **Vault Type**      | **Example Strategy**    | **Liquidity Buffer** | **Typical Redemption Time** |
| ------------------- | ----------------------- | -------------------- | --------------------------- |
| **Ultra-liquid**    | Short-term treasuries   | **30%**              | **1–3 days**                |
| **Standard**        | Corporate credit, ETFs  | **10–20%**           | **5–10 days**               |
| **Gated or Locked** | Lending, private credit | **0–10%**            | **14–30+ days**             |

> ⚠️ **Variable Timelines**
>
> These timelines may vary based on market conditions, strategy performance, and vault inflows/outflows.

***

## What Impacts Redemption Speed?

Several factors affect how quickly your funds are returned:

* **Strategy liquidity**: Treasuries are liquid; private credit is not
* **Redemption volume**: Large outflows may trigger gates
* **Redemption window**: Some vaults process requests weekly or monthly
* **Lock-up period**: Certain vaults enforce a minimum holding period

> 📊 **Full Transparency**
>
> You'll always see the **next redemption window** and **estimated payout time** before confirming your withdrawal.

***

## Is There a Lock-Up Period?

**Yes.** Some strategies require your funds to remain invested for a minimum duration to match the liquidity and structure of the underlying assets.

* **Lock-ups vary by vault** - typically **15 to 90 days**
* **During this time**, redemptions cannot be initiated
* **After the lock-up expires**, you may redeem during the next window

***

## Redemption Status Tracking

All redemption requests can be tracked directly in the **Sova app**, including:

* **Request date**
* **Expected processing window**
* **Status**: Queued / In Process / Completed
* **Amount pending**

> 🔔 **Stay Informed**
>
> You'll also receive **in-app notifications** when your redemption is ready to claim.