Redemption and Withdrawals

Phase I - Withdrawal Your Collateral

During Phase I, users can withdraw their deposits at any time with no withdrawal fee. This ensures liquidity and flexibility for initial investors.

Phase II - Redeem your brktETH

One way to redeem brktETH would be to simply swap it into another asset via DEXs once available. However, users will also have the option to redeem brktETH at zero fees (not including gas) for underlying collateral on Ethereum. Once Phase II goes live, there will be an initial period where redemptions will be LOCKED.

Token Availability and Swaps

• Users can request to redeem any available asset in the treasury. Eventually, we aim to allow users to be able to redeem and swap into the asset they request, but this is still a roadmap item.

Redemption Fee Policy

No redemption fees will be charged, however, we reserve the right to institute a fee later if the withdrawal function is being used too frequently for arbitrage.

All redemptions are delayed 5 days. Redemptions are priced based on the LST’s redemption conversion rates to acquire the underlying ETH at the time the deposit is requested. No pricing oracles are used. Users will need to return to the site to redeem their underlying assets after 5 days.

Redemption Price Example:

If xLST has a redemption conversion factor of 3.0 to ETH and brktETH’s conversion factor is 1.5 to ETH. Regardless of the current price market price of the assets, a user receives 0.5 of xLST for each one brktETH redeemed, in 5 days.

---

Note: The reason we have a 5 day delay is to discourage users from using brktETH as a zero-cost swap facility. This strategy is designed to ensure fair and transparent redemption processes while maintaining the flexibility and security of our treasury funds.