> ## Documentation Index > Fetch the complete documentation index at: https://docs.beliefsystems.xyz/llms.txt > Use this file to discover all available pages before exploring further. # Redeeming Shares > How to exit a Belief Index position by redeeming shares at the next NAV window. 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 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. 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. 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 ``` 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](/investing/fees) for current rates. Once proceeds have settled in your cash balance, you can withdraw to your own wallet. See [Deposits & Withdrawals](/investing/deposits-withdrawals#withdrawing). ## 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 ``` ``` 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: 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. 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: 1. **Proceeds appear in your cash balance** at or shortly after the NAV window 2. **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 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](/risk/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 | How to withdraw your proceeds. Fee structure for minting and redemption. How your share value is determined. Including liquidity risk and redemption timing.