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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 USDC proceeds are credited to your uninvested balance.

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The Redemption Process

1

Place a redemption order

Specify the number of shares you want to redeem (or a target USDC 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.
2

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.
3

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
4

Proceeds credited to your balance

USDC proceeds, net of any applicable redemption fee, are credited to your uninvested balance:
net_proceeds = gross_proceeds - redemption_fee
Redemption fee rates are configured per series and subject to change. See Fees for current rates.
5

Withdraw (optional)

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

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Pricing

Like minting, redemptions use forward pricing — your order executes at the next NAV window’s price. 
Shares redeemed:          100
NAV per share at window:  $10.00
Gross proceeds:           $1,000.00
Net proceeds:             $1,000.00

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How Liquidation Works

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

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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.
To generate USDC 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.

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Redemption vs. Minting: Asymmetric Considerations

While the processes mirror each other, there are some practical differences:
AspectMintingRedemption
DirectionCash in, shares outShares in, cash out
Underlying actionSystem buys positionsSystem sells positions
Liquidity impactGenerally improves series liquidityRequires selling into market
Capacity constraintsTypically less constrainedMay be more constrained in thin markets
PausingGated independentlyGated 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.

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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.

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Settlement Timing

After your shares are burned and proceeds are credited:
  1. Proceeds appear in your uninvested balance at or shortly after the NAV window
  2. Withdrawal of those proceeds may take additional time for processing and settlement
  3. 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.

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Key Properties

PropertyDetail
PricingForward pricing at next NAV window
SettlementProceeds credited to uninvested balance after execution
Liquidation methodProportional — each position reduced by the same percentage
FairnessPro-rata scaling if capacity is limited
CancellationOrders can be cancelled before the window processes
Full balanceFull 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.