Withdrawals & Exit Mechanics

Exit mechanics differ by tranche, and there is no lockup on Senior deposits. The protocol maintains three layers of exit liquidity, designed so that lenders can always get out, even in stressed markets.

1. 1.Instant Withdrawal (0 to 3% Haircut). The protocol maintains a reserve in T-bills and stablecoins (targeting 15% of pool value). Senior lenders can withdraw instantly from this reserve at any time. A dynamic haircut of 0% to 3% applies depending on reserve health: when the reserve is full, the haircut is zero. As it depletes, the haircut rises to a maximum of 3%, creating an anti-run incentive. Haircut proceeds flow back to the pool.
2. 2.FIFO Queue (No Haircut). If you prefer to avoid the haircut, you can join a first-in-first-out redemption queue instead. There is no haircut, and you are paid as liquidity becomes available from premium settlements and borrower repayments. The app shows your position in the queue and an estimated time to fill. How your payout is priced depends on your tranche, covered under "Once you are in the queue" below.
3. 3.Claim Resale. If you are in the queue and need to exit faster, you can list your claim for sale. Senior claims are fixed-dollar IOUs, so a buyer inherits your queue position without taking on NAV exposure. Junior claims stay loss-bearing until paid, so a buyer takes on that exposure and prices it accordingly. Asks are set by the seller and float freely. This brings in outside capital and is designed as the third layer for stressed scenarios when the reserve is depleted.

Once you are in the queue

The moment you join the queue, in either tranche, your shares move into escrow and your place in line is fixed. Queued capital stops earning yield from that point, which is the cost of exiting and accrues to the lenders who stay. You are paid in strict first-in-first-out order. What differs between the tranches is whether your capital keeps absorbing losses while it waits.

• Senior. Your claim is fixed in dollars at the NAV when you requested, and it no longer bears losses while it waits. The one exception is a bad-debt event large enough to reach the Senior tranche, which requires the Insurance Fund and the entire Junior tranche to be exhausted first. In that case, unpaid Senior claims share the loss alongside everyone else. This keeps the fixed-dollar claim clean in every normal condition while preserving fairness in the only scenario where Senior is genuinely at risk.
• Junior. Your claim keeps bearing losses until it is paid, and you are paid at NAV on the payment date rather than the request date. Junior is the first-loss buffer, so queuing stops your yield but not your risk. This is deliberate: if giving notice let you lock in a pre-loss value, early leavers could pass their losses to the lenders who stay, which is exactly what the notice period exists to prevent.

Cancelling a request

A queued request can be cancelled at any time before it is paid, in either tranche. Cancelling releases your escrow back into the pool as a fresh position at the current NAV, not a restoration of your original shares, so you simply resume lending from wherever NAV stands that day. If you later re-request, you rejoin at the back of the queue, and for Junior that starts a fresh 45-day notice period. One limit applies: a claim you have listed for resale must be delisted before it can be cancelled, and once a claim has sold it is no longer yours to cancel.

Junior Tranche Withdrawals

Junior requires a minimum 45-day notice period before withdrawal, reflecting its role as the structural first-loss buffer for the pool. After notice is given, your shares are escrowed and queued under the rules above: yield stops, losses continue until you are paid, and Junior claims are also eligible for claim resale. The notice period is what stops Junior from exiting just ahead of a loss, which would defeat the purpose of the tranche.