> For the complete documentation index, see [llms.txt](https://zeit-1.gitbook.io/zeit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://zeit-1.gitbook.io/zeit/vaults/vault-redemptions-on-zeit.md).

# Vault Redemptions on ZEIT

Redemptions are designed to be **fair**, **realistic**, and **verifiable** — even when some markets are thin or moving fast.

### TL;DR (read this)

* Withdrawals settle during **Rolls** (batch processing).
* The vault’s displayed **Live** **PPS** (price per share) is the **last settled Roll price**.
* When you request a withdrawal, we estimate a **realistic value** based on what the vault could *actually* sell for right now (not fantasy prices).
* At the Roll, we calculate what you’re **fairly owed**.
* Then the **vault manager chooses the best way to raise that cash** by usually by selling more liquid positions first to avoid unnecessary losses.
* Your final amount becomes **claimable after the Roll**, with on-chain proofs.

***

### Two separate concepts (this is the key)

#### A) Your entitlement is **pro‑rata**

You are always entitled to your **pro‑rata share** of the vault’s fair value.

If you redeem **10% of the vault shares**, you’re entitled to roughly **10% of the vault’s fair NAV** (Net Asset Value), calculated at the Roll.

#### B) Execution is **optimized**, not strictly pro‑rata selling

To pay you that fair $ amount, the vault does **not** have to sell 10% of every position.

Instead, the **vault manager can choose which positions to sell** (and how) to raise the required cash **as efficiently as possible**, for example:

* sell **more liquid positions** first,
* avoid dumping thin markets at a big discount,
* use limit orders and unwind gradually.

This is done to **maximize the value you receive** and reduce unnecessary losses caused by poor liquidity.

***

### What is a Roll?

A **Roll** is when deposits and withdrawals are processed and settled.

At each Roll:

1. the vault computes a fair **NAV**,
2. withdrawals are matched to their fair share of that NAV,
3. positions are traded/unwound as needed,
4. final claim amounts are published.

Think of Rolls as the moment the system “closes the books” and finalizes who can claim what.

***

### How we calculate the vault’s fair value (NAV)

When we compute NAV, we do **not** assume we can sell at the best displayed price.

We ask a more honest question:

> “If we had to sell the portfolio right now, what would we realistically receive?”

To answer this, we:

* read the **full orderbook liquidity** for the vault’s positions (e.g., on Polymarket),
* estimate the **price impact** of selling (in plain terms: thin markets often sell lower),
* add any **liquid cash** sitting in the vault.

This gives what we call **impact-aware NAV**.

#### Why this matters

If a vault used “too-optimistic” pricing, early withdrawers could take value that isn’t actually realizable, leaving remaining holders exposed.

Impact-aware NAV makes the system:

* fairer,
* harder to game,
* and more realistic during low-liquidity conditions.

***

### Step-by-step: what happens when you withdraw

#### Step 1 — You request a redemption

You choose how many vault shares you want to redeem and deposit them into the redemption queue.\
![](https://3790984691-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FzJbq2gtrgyNNaYO2KAd9%2Fuploads%2FXeHG4DXaP4sD10TBFgiM%2Fimage.png?alt=media\&token=ff9498de-7198-4b0a-b32a-afa6795a3cde)

#### Step 2 — You see a *live estimate*

The UI shows an estimate based on:

* current market prices,
* current liquidity depth,
* and the vault’s liquid cash.

**This is an indication, not a guarantee.** Markets move.

#### Step 3 — At the Roll, your fair $ amount is determined

At the Roll, we calculate:

* vault NAV (impact-aware),
* your pro‑rata share based on the shares you’re redeeming.

This becomes the **target fair withdrawal value** the vault aims to deliver.

#### Step 4 — The manager raises cash in the most efficient way

Now the important nuance:

To satisfy your target fair $ amount, the **manager can choose which positions to sell**.

In practice, this often means:

* using **available cash** first,
* selling **liquid positions** first,
* avoiding forced selling of illiquid positions at a steep discount,
* unwinding carefully (e.g., staged execution / limit orders) to improve outcomes.

The goal is simple:

> **Deliver the fair value with the least execution loss possible.**

#### Step 5 — Final claim is set and becomes claimable

Once trades and accounting are finalized for that Roll:

* your final claim amount is published,
* and you can claim it in the ZEIT interface.

***

### Why your final payout may differ from the vault’s displayed PPS

The vault’s PPS is the **last settled Roll price**.

Your withdrawal settles at a **future Roll**, and between now and then:

* prices change,
* liquidity changes,
* positions can move toward 0 or 1,
* and execution outcomes vary.

So:

* **PPS = last confirmed settlement**
* **Withdrawal estimate = “if we sold now” indicator**
* **Final claim = what was achieved and finalized at the Roll**

***

### A simple example (shows why “manager discretion” helps you)

Vault holds:

* Position A (very liquid)
* Position B (thin liquidity)

You redeem shares worth a fair target of **$1,000**.

If the vault sold pro‑rata across both:

* it might be forced to sell some of Position B at a large discount,
* lowering your realized payout.

Instead, the manager may:

* sell more of Position A (liquid) to raise the $1,000 efficiently,
* and avoid unnecessarily dumping Position B into a thin book.

You still get your **fair pro‑rata value** — but with **better execution**.

***

### Transparency & verification (trustless settlement)

Every Roll produces a public settlement record, including withdrawals.

We publish:

* a **Roll report** (what happened + how NAV was computed),
* and **Merkle proofs** so you can verify your claim independently.

Where it lives:

* **Polygon:** Merkle root/proofs are submitted on-chain
* **Arweave:** the full report history is stored permanently

**Links**

* Roll report archive (Arweave): **\[INSERT LINK]**
* On-chain proofs (Polygon): **\[INSERT LINK]**

***

### FAQ (fast answers)

#### “Is the estimate guaranteed?”

No. It’s a live indicator. The final amount is determined at the Roll after execution.

#### “Why not always sell everything pro‑rata?”

Because in thin markets, pro‑rata selling can force unnecessary losses. Manager discretion lets withdrawals be funded more efficiently, while your entitlement remains pro‑rata to NAV.

#### “Can I lose money by withdrawing?”

Yes. This is a real strategy with real market risk. Early withdrawal can also incur more execution loss if markets are thin or moving.

#### “What’s the best time to redeem?”

In general, redemptions are often **smoothest after major positions have resolved**, because:

* resolved markets turn into settled value,
* the vault may hold more liquid cash,
* and fewer thin positions need to be sold to fund withdrawals.

That said, markets can move at any time — so there’s no universal “perfect” moment.

#### “Is ZEIT working on faster / instant withdrawals?”

Yes. We’re working on solutions to make early exits smoother, including:

* a mechanism that can allow **instant redemption via liquid token purchasing** (so users can exit without forcing immediate market sells), and
* encouraging vault managers to maintain a **liquidity buffer** so smaller withdrawals can often be honored more quickly.

More improvements are coming here — our goal is to make redemptions faster while staying fair and realistic.