Redeeming Shares

Redemption is the process of exiting your Belief Index position – analogous to redeeming mutual fund shares. Your shares are burned at the next NAV window’s price and dollar proceeds are credited to your cash balance.

The Redemption Process

Place a redemption order

Specify the number of shares you want to redeem (or a target dollar amount). Your shares are locked while the order is pending – they cannot be used for other orders or transferred.You can cancel the order at any time before the next NAV window processes.

Wait for the next NAV window

Your order queues until the next scheduled NAV window. Like minting, redemptions use forward pricing – your shares will be valued at the NAV computed at the window, not the NAV when you placed the order.

Shares are burned at NAV

At the NAV window, the system computes the current NAV per share. Your shares are canceled and gross proceeds are calculated:

gross_proceeds = shares_redeemed x nav_per_share

Proceeds credited to your balance

Dollar proceeds, net of any applicable redemption fee, are credited to your cash balance:

net_proceeds = gross_proceeds - redemption_fee

Redemption fee rates are configured per series and subject to change. See Fees for current rates.

Withdraw (optional)

Once proceeds have settled in your cash balance, you can withdraw to your own wallet. See Deposits & Withdrawals.

Pricing

Like minting, redemptions use forward pricing – your order executes at the next NAV window’s price.

Without fees
With redemption fee (example)

Shares redeemed:          100
NAV per share at window:  $10.00
Gross proceeds:           $1,000.00
Net proceeds:             $1,000.00

Shares redeemed:          100
NAV per share:            $10.00
Gross proceeds:           $1,000.00
Redemption fee (0.5%):    $5.00
Net proceeds:             $995.00

How Liquidation Works

When shares are redeemed, the series must generate cash to pay the investor. This requires selling a portion of the underlying prediction market positions. The liquidation follows a proportional approach:

Proportional liquidation explained

Rather than selling all of one position and none of another, the system sells a proportional slice of each position in the basket. This preserves the basket’s relative composition for remaining holders.Example: A series holds positions in 7 markets. If 10% of outstanding shares are redeemed:

Each of the 7 positions is reduced by approximately 10%
The remaining 90% of positions maintain the same relative weights
No single market is over-liquidated

This approach ensures that redemptions do not distort the index composition or concentrate risk for remaining investors.

In traditional finance, this is equivalent to how an ETF authorized participant redeems shares by receiving a pro-rata basket of underlying securities. The fund’s composition is preserved for remaining holders.

Partial Fills

If redemption demand exceeds the system’s capacity in a single window – due to limited liquidity in underlying markets or risk caps – orders are scaled pro-rata, identical to the minting process.

Why redemptions might be capacity-constrained

To generate cash for redemption proceeds, the system must sell prediction market positions. In markets with limited depth:

Selling large quantities could move the market price significantly (market impact)
The system enforces participation limits to prevent excessive price impact
This protects remaining holders from bearing the cost of a large, market-moving liquidation

When capacity is constrained, every investor in the window receives the same fill percentage. The unfilled portion of shares is unlocked and returned to your balance.

Redemption vs. Minting: Asymmetric Considerations

While the processes mirror each other, there are some practical differences:

Aspect	Minting	Redemption
Direction	Cash in, shares out	Shares in, cash out
Underlying action	System buys positions	System sells positions
Liquidity impact	Generally improves series liquidity	Requires selling into market
Capacity constraints	Typically less constrained	May be more constrained in thin markets
Pausing	Gated independently	Gated independently; may be paused while minting remains open

Redemption may be paused independently of minting – for example, during periods of market stress or limited underlying liquidity. This is standard practice in open-end fund management.

Full Redemption

You can always redeem your full remaining balance, even if it falls below any minimum order size. Minimums apply to new orders, not to exiting a position entirely. This prevents investors from being trapped with small, unredeemable balances.

Settlement Timing

After your shares are burned and proceeds are credited:

Proceeds appear in your cash balance at or shortly after the NAV window
Withdrawal returns those proceeds as native USDC to your Ethereum-mainnet wallet – processed automatically, usually within a few hours, with no action needed from you
Settlement is not instant – this reflects the time needed to liquidate underlying positions at fair prices

Redemption is not instant. Proceeds depend on the next NAV window and may take time to settle. In stressed market conditions, redemptions may be delayed, scaled down, or temporarily paused. This is by design – the system prioritizes fair pricing and solvency over speed. See Risk Factors for a full discussion.

Key Properties

Property	Detail
Pricing	Forward pricing at next NAV window
Settlement	Proceeds credited to cash balance after execution
Liquidation method	Proportional – each position reduced by the same percentage
Fairness	Pro-rata scaling if capacity is limited
Cancellation	Orders can be cancelled before the window processes
Full balance	Full remaining balance can always be redeemed regardless of minimums

Deposits & Withdrawals

How to withdraw your proceeds.

Fees

Fee structure for minting and redemption.

NAV Per Share

How your share value is determined.

Risk Factors

Including liquidity risk and redemption timing.

Getting Started

Understanding Indices

Transparency

Alpha Program

Risk & Legal

Reference

The Redemption Process

Pricing

How Liquidation Works

Partial Fills

Redemption vs. Minting: Asymmetric Considerations

Full Redemption

Settlement Timing

Key Properties

Deposits & Withdrawals

Fees

NAV Per Share

Risk Factors

​The Redemption Process

​Pricing

​How Liquidation Works

​Partial Fills

​Redemption vs. Minting: Asymmetric Considerations

​Full Redemption

​Settlement Timing

​Key Properties

Deposits & Withdrawals

Fees

NAV Per Share

Risk Factors

The Redemption Process

Pricing

How Liquidation Works

Partial Fills

Redemption vs. Minting: Asymmetric Considerations

Full Redemption

Settlement Timing

Key Properties