Redemptions
ONyc Redemptions Overview
At OnRe, redemptions allow holders of ONyc tokens to liquidate part or all of their position in ONyc SA on a set schedule. Because ONyc operates at the intersection of reinsurance and DeFi, our goal is to bring greater liquidity to capital that would traditionally remain locked for long periods.
Beginning in 2026, all primary-market redemptions for ONyc are processed digitally. OnRe targets reserving up to 20% of underwriting capital to support redemptions, with weekly redemption capacity set at up to 2.5% of ONyc SA’s net asset value (NAV). These figures are targets and may change.
How Automated Redemptions Work
Our automated redemption mechanism is designed to be fair, transparent, and predictable while maintaining the stability of ONyc SA. The process operates as follows:
Investors can request to redeem ONyc tokens for USDC or USDG at any time through app.onre.finance.
An algorithm determines and displays the expected redemption time because requests are constrained by the available amount of capital.
Smaller redemption requests may be fulfilled sooner than larger ones.
Investors must deposit ONyc tokens into the smart contract before submitting a redemption request; requests cannot be cancelled.
All requests are stored onchain, creating a transparent queue visible to anyone.
While waiting, investors remain economically active in ONyc SA, continuing to earn or lose value in line with ONyc’s underlying performance.
Redemptions are only executed when the smart contract holds sufficient USDC or USDG. If liquidity is temporarily unavailable, requests remain pending until replenished.
Backend systems have restricted privileges; even in the event of compromise, the backend cannot withdraw or mint funds and can only reorder valid requests.
High-Level Design System
OnRe’s automated redemption infrastructure is built to ensure security, transparency, and operational integrity.
The smart contract ensures the custody and validity of each redemption request.
The backend fulfils redemptions at the current ONyc offer price at the time of execution, not at the time of submission.
All system settings can be adjusted by authorized administrators through a secure interface, with each change logged for full transparency.
Offer contracts custody both ONyc, USDC, and USDG.
The backend wallet can execute redemptions but cannot withdraw funds.
In the event of compromise, risk is limited to queue reordering.
Before any redemption is executed, the smart contract verifies that sufficient USDC or USDG is available. If not, the transaction reverts with a funding error and remains in Scheduled status.
Risk Considerations
Redemptions carry inherent risks, primarily related to liquidity and continued exposure:
The available amount of capital may be insufficient to meet redemption requests on an investor’s preferred date.
Any portion of a request not redeemed immediately continues to be exposed to ONyc SA’s performance until processed.
The participation agreement specifies that all redemptions are subject to the “Available Amount.” It will be updated to clarify that if liquidity is insufficient, the request remains pending until adequate capital is available and will be executed at the prevailing NAV at the time of fulfilment.
Eligibility
Only verified ONyc holders may submit redemption requests.
Redemption payouts can only be sent to wallets verified during onboarding.
Users acquiring ONyc on secondary markets must complete OnRe’s AML/ATF procedures before making a redemption request.
ONyc primary market users are already fully verified, resulting in no additional AML/ATF implications.
Fees
OnRe charges a fee of 10 basis points on all fulfilled redemptions processed through the online application. This fee is subject to change.
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