Liquidity and Redemption

Liquidity flexibility is fundamental to attracting modern investors. OnRe combines scheduled redemption windows and on-chain secondary liquidity to offer a comprehensive, transparent, and efficient market access experience.

Redemption is structured to provide investors with clear, scheduled liquidity pathways via rONyc tokens, alongside real-time secondary market liquidity options.

Redemption Process:

• To redeem, a user must be KYC’d via the platform and meet our eligibility requirements, including being a sophisticated investor.

• Redemptions occur on a quarterly cycle.

• At the start of each quarter, there is a 30-day notice window during which users may exchange their ONyc tokens for redemption tokens.

• Redemptions are only completed on the next published redemption date which occurs at the end of the quarter, and subject to the available amount in the pool - the available amount is the amount that can be made available for redemption, taking into account existing and expected liabilities of the pool.

• If total redemption requests exceed the available amount, redemptions will be fulfilled pro-rata, with any remainder reconverted to ONyc tokens for future redemption rounds.

• The final value of redemptions is based on the last published NAV at the end of the quarter.

Liquidity and Market Making:

• A significant portion of ONyc tokens will be allocated to provide ample liquidity in automated market making (AMM) protocols, ensuring market access regardless of redemption dates. We will incentivise market makers to provide such liquidity.

• A market-making bot actively arbitrages price differences to maintain the token price close to its net asset value (NAV).

• Users can borrow against ONyc tokens held in their wallet to further boost yields.

Direct Liquidity:

• In addition to AMM liquidity, direct liquidity events are pre-planned to maximize efficiency.

• Fund managers may mint additional ONyc tokens or issue rONyc tokens based on market needs and investor demand.

• AMM liquidity provides faster access and more predictable pricing, while direct redemption offers a scheduled exit pathway without AMM fees.

This dual liquidity approach gives investors multiple pathways for access and exit, enhancing overall market resilience.