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. Permissionless and on-chain. (exercise principal protectionPrincipal ProtectionStructural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. 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• WithdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount.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 optional buyback and burn (if configured). (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 any standard NFT. NFTs with per-position accounting.

Active Position (pFT)

Investor holds a pFT position in a live raise

Investor chooses one

Hold

Gives up Nothing

Receives Nothing

Capital Stays in strategy

Status Active

or

Redeem

Gives up FT amount (burned)

Receives Collateral back

Capital Leaves system

Status Exercised

or

Withdraw

Gives up FT amount (burned)

Receives FT tokens

Capital Moves to capitalDivesting

Status Forfeited

The Three Actions

Hold Active

Gives up Nothing

Receives Nothing

Capital outcome Capital stays in strategy

Redeem divest Exercised

Gives up Position FT amount (burned from position)

Receives Collateral back

Capital outcome Collateral leaves active backing

Withdraw withdrawFT Forfeited

Gives up Position FT amount (burned from position)

Receives FT tokens

Capital outcome Collateral moves to capitalDivesting

All three actions are available without discretionary approval. RedeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. 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 and withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount.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 optional buyback and burn (if configured). support partial amounts.

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 routes 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 and the project ecosystem budget. If buyback is enabled, yield surplus can also fund buyback and burn. via wrapper
• pFT remains in wallet and is transferable as ERC-721
• Position retains both upside exposure and principal protectionPrincipal ProtectionStructural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Proportional to reserve backing, not a fixed dollar guarantee.
• YieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. accrues 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 routes to the yield strategy and backs investor principal protection. by calling divest or divestUnderlying.

Step by step

1. Investor calls redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain. 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. Contract computes 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 routes to the yield strategy and backs investor principal protection. out from stored 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 decreases (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 optional buyback and burn (if configured). 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 routes to the yield strategy and backs investor principal protection. from strategy.
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 routes to the yield strategy and backs investor principal protection. transfers to investor.
6. 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. returns to the available pool for future investors or project reclaim.
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 routes to the yield strategy and backs investor principal protection. out depends on stored position 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 a live price feed. See Formula Reference for the exact conversion formula.

Alternative path: underlying protocol shares

divestUnderlying returns strategy position tokens (e.g., 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 routes to the yield strategy and backs investor principal protection., if the strategy supports it.

Key properties

• Always available: raise paused, token price zero, project team gone. RedemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain. is permissionless and on-chain.
• Partial redemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain. supported
• No oracle consulted at redemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain. time; exit conversion uses stored position parameters
• Circuit breaker can throttle outflow velocity through wrapper checks

RedemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain. is proportionalProportional SettlementEach investor receives their proportional share of the reserve pool. Under normal conditions this equals the original deposit; in a shortfall it equals the proportional share of what remains. The last redeemer gets the same rate as the first., not a fixed-amount guarantee. See Guarantees for what proportional settlementProportional SettlementEach investor receives their proportional share of the reserve pool. Under normal conditions this equals the original deposit; in a shortfall it equals the proportional share of what remains. The last redeemer 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 ProtectionStructural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. 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 optional buyback and burn (if configured). amount.

Prerequisite

transferable must be enabled on PutManager.

Step by step

1. Investor calls withdrawFT(id, amount).
2. Contract computes 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 routes to the yield strategy and backs investor principal protection. equivalent with the 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 decreases 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 transfer 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 routes to the yield strategy and backs investor principal protection. accrues to capitalDivesting[token].
6. If buybackBuyback and BurnOptional mechanism where released capital from withdraws and yield surplus can be used to buy back and burn project tokens, reducing circulating supply. Enabled by the raise creator at raise creation. is enabled, 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 optional buyback and burn (if configured). divestedDivestContract function (divest / divestUnderlying) that implements exits via redeem. Returns collateral (or strategy position tokens) to the investor. capital for buybackBuyback and BurnOptional mechanism where released capital from withdraws and yield surplus can be used to buy back and burn project tokens, reducing circulating supply. Enabled by the raise creator at raise creation./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

What the investor gives up

• Principal protectionPrincipal ProtectionStructural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Proportional to reserve backing, not a fixed dollar guarantee. on that amount
• Ability to redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain. that 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 optional buyback and burn (if configured). 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 optional buyback and burn (if configured). supported

Transfer and Secondary Market

Positions are ERC-721, so transferability is per token:

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

Whoever owns the pFT controls its actions.

Pool and Accounting Dynamics

On redeem

• ftAllocated decreases by redeemedRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. 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 routes to the yield strategy and backs investor principal protection. amount

On withdraw

• 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 optional buyback and burn (if configured). 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 routes to the yield strategy and backs investor principal protection. amount

The redemptionRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain. rate stays stable during normal operations. It deviates only 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 and the project ecosystem budget. If buyback is enabled, yield surplus can also fund buyback and burn. losses reduce 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 routes to the yield strategy and backs investor principal protection..

New deposits

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

Summary Table

Hold

Redeem

Withdraw

Action

Hold No tx

Redeem divest / divestUnderlying

Withdraw withdrawFT

Available

Hold Always

Redeem Always (subject to liquidity / rate limits)

Withdraw After transferable enabled

Partial support

Hold N/A

Redeem Yes

Withdraw Yes

Position token after full amount

Hold Unchanged

Redeem Burned when exhausted

Withdraw Burned when exhausted

Capital effect

Hold Stays deployed

Redeem Returned to user

Withdraw Moved to capitalDivesting

Reversible

Hold N/A

Redeem No for redeemed amount

Withdraw No for withdrawn amount