Hold, Redeem, and Withdraw

Overview

Every investor position has three actions:

• Hold
• RedeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. behavior (exercise principal protectionPrincipal ProtectionThe structural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Protection is proportional to reserve backing, not a fixed dollar guarantee.)
• WithdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. behavior (claim FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. and release protection)

In the codebase, positions are ERC-721 pFTpFTERC-721 position token representing an investor's position. Stores collateral token, amounts, FT(fundraising token) allocation, and strike/oracle context. Transferable as a standard NFT. NFTs with per-position accounting.

The Three Actions

Action	Investor gives up	Investor receives	Capital outcome	Position status
Hold	Nothing	Nothing	Capital stays in strategy	Active
RedeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. behavior (divest)	Position FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. amount (burned from position)	CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. back	CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. leaves active backing	Exercised for that amount
WithdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. behavior (withdrawFT)	Position FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. amount (burned from position)	FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. tokens	CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. moves to capitalDivestingCapital DivestingState variable (capitalDivesting[token]) tracking released collateral available for the project to pull for buyback and burn operations. Increases when investors withdraw FT.	Forfeited for that amount

All three actions are available without discretionary approval. Partial amounts are supported for redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. and withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. behavior.

Hold

Hold is the default state.

While holding:

• CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. remains deployed in yield strategyYield StrategyProtocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn. via wrapper
• pFT remains in wallet and is transferable as ERC-721
• Position retains both upside exposure and principal-protection behavior
• YieldYieldReturns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. continues to accrue in strategy and follows configured distribution

Redeem (Exercise PUT Behavior)

The investor exits to collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. by using divest or divestUnderlying.

Step by step

1. Investor calls redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. path on a position with id and FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. amount.
2. CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. out is computed with on-chain conversion math from position parameters.
3. Position FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. amount is reduced (and position burns if fully exhausted).
4. Wrapper withdrawsWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. from strategy path.
5. CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. is sent to investor.
6. FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. allocation for that position amount is released back to the available pool. Released FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. can be allocated to future investors or reclaimed by the project.
7. Global accounting updates (ftAllocatedftAllocatedState variable tracking FT(fundraising token) currently allocated to active investor positions. Decreases on redeem and withdraw., collateralSupplyCollateral SupplyState variable (collateralSupply[token]) tracking active backing collateral per token type. Increases on deposit, decreases on redeem.).

CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. out is computed from the position’s stored parameters (strikeStrikeOracle price at deposit time, scaled to 1e8 (Chainlink standard). Recorded during deposit-time conversion and used for exit calculations — the oracle is not consulted again at exit time., ftPerUSDftPerUSDNumber of FT(fundraising token) per USD at the raise's fixed token price, scaled to 1e8. Recorded at deposit time and used in exit conversion formulas., token decimals) — not from a live price feed. See Formula Reference for the exact conversion formula.

Alternative path: underlying protocol shares

divestUnderlying can return strategy position tokens (for example Aave aTokens) instead of underlying collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection., depending on strategy support.

Key properties

• Always available, even if the raise is paused, even if the project token price is zero, even if the project team disappears. RedemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. is permissionless and on-chain.
• Partial redemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. supported
• Oracle is not consulted at redemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. time, exit conversion uses the position’s stored parameters, not a live price feed
• Circuit breaker can throttle outflow velocity through wrapper checks

RedemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. is proportionalProportional SettlementEach investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first., not a fixed amount guarantee. See Guarantees for details on what proportional settlementProportional SettlementEach investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first. means in practice.

Withdraw (Claim FT, Forfeit Protection)

The investor takes project FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. exposure and gives up principal protectionPrincipal ProtectionThe structural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Protection is proportional to reserve backing, not a fixed dollar guarantee. for that withdrawnWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. amount.

Prerequisite

transferable must be enabled on PutManager.

Step by step

1. Investor calls withdrawFT(id, amount).
2. CollateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. equivalent is computed with same collateralFromFT formula.
3. Position FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. amount is reduced by requested amount.
4. FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. tokens are transferred to investor wallet.
5. Equivalent collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. is tracked under capitalDivesting[token].
6. Admin can later withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. divestedDivestContract function (divest / divestUnderlying) implementing exits via redeem. Returns collateral (or strategy position tokens) to the investor. capital for buybackBuyback and BurnMechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply./burn operations.

What the investor gets

• Freely held FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. tokens for the withdrawnWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. amount

What the investor gives up

• Principal protectionPrincipal ProtectionThe structural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Protection is proportional to reserve backing, not a fixed dollar guarantee. on the withdrawnWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. amount
• Ability to redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. that same amount later

Key properties

• Gated by transferable
• Irreversible for withdrawnWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. amount
• Partial withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. supported
• Feeds buybackBuyback and BurnMechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply. pathway via released capital accounting

Transfer and Secondary Market

Since positions are ERC-721, transferability is per position token:

• Position owner can transfer pFT
• New owner inherits all action rights for remaining amount in that position
• Secondary trading follows NFT marketplace or OTC patterns

Whoever owns the pFT controls its actions.

Pool and Accounting Dynamics

Redeem behavior

• ftAllocated decreases by redeemedRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. amount
• collateralSupply[token] decreases by converted collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. amount

Withdraw behavior

• ftOfferingSupply and ftAllocated decrease by withdrawnWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. FTFT (Fundraising Token)The project's token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. amount
• capitalDivesting[token] increases by converted collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. amount

The redemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. rate remains stable through normal operations. The only scenario where it could deviate is if yield strategyYield StrategyProtocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn. losses reduce the backing collateralCollateralThe asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection..

New deposits

• Increase ftAllocated
• Increase collateralSupply[token]
• Mint new pFT positions

Summary Table

	Hold	RedeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. behavior	WithdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. behavior
Action	No tx	divest / divestUnderlying	withdrawFT
Available	Always	Always (subject to liquidity/rate limits)	After transferable enabled
Partial support	N/A	Yes	Yes
Position token after full amount	Unchanged	Burned when exhausted	Burned when exhausted
Capital effect	Stays deployed	Returned to user	Moved to capitalDivesting
Reversible	N/A	No for redeemedRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. amount	No for withdrawnWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. amount