> For the complete documentation index, see [llms.txt](https://venzofinance.gitbook.io/venzofinance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://venzofinance.gitbook.io/venzofinance-docs/venzo-app/architecture/redemption.md). # Redemption Different structured products have different liquidity profiles. Venzo supports both liquid redemption and epoch-based redemption models. *** #### **Liquid Redemption** Liquid redemption is utilized when the vault can meet withdrawals quickly from idle liquidity or highly liquid positions. The vault checks the user's share balance, the current share price, available liquidity, applicable fees, and the overall product state. If all conditions are satisfied, the user burns their shares and immediately receives the settlement asset. *** #### **Epoch-Based Redemption** Epoch-based redemption is designed for less liquid strategies, private credit, complex structured yield, or products where positions must be unwound on a predetermined schedule. This mechanism operates in five stages: 1. **Request Accumulation:** Liquidity Providers (LPs) submit withdrawal requests during an open epoch or cooldown window. The vault records each request and locks the requested shares, preventing them from being reused as freely deployable capital. 2. **Epoch Closure and Price Lock:** At the end of the cooldown window, the epoch closes to new entries. The redemption price is locked using the authoritative NAV at the exact time of closure. This protects both exiting and remaining LPs from subsequent price manipulation or retroactive valuation changes. 3. **Liquidity Calculation:** The vault calculates the total settlement asset required to satisfy all claims in the closed epoch. If positions must be unwound, the Strategy Manager returns the required capital to the base vault according to the redemption schedule. 4. **Liquidity Verification:** The epoch is marked as fulfilled only after the vault verifies that sufficient idle settlement assets are present. If insufficient liquidity is available, claims remain pending until the settlement assets arrive, preventing claims from being processed against unavailable funds. 5. **Claim Execution:** Once liquidity is verified, LPs can claim their settlement assets. The claim process emits onchain events that integrators index and display in the user interface. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://venzofinance.gitbook.io/venzofinance-docs/venzo-app/architecture/redemption.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.