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. However, users will also have the option to redeem $brktETH at zero fees (not including gas) for underlying collateral on Ethereum. If the $brktETH is on Arbitrum or another chain, it will first need to be bridged to Ethereum before its collateral can be redeemed.

Token Availability and Swaps

• Users can request to withdraw any combination of treasury assets when withdrawing. It's possible (although unlikely) that the token the user deposited is partially or fully unavailable. In this case,

• Users will be offered to have the platform do a DEX swap, at their gas expense, to convert the received token to their desired token. This may be an important feature for users who want to show a continuous holding period of an asset for tax purposes.

Withdrawal Fee Policy

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

All withdrawals are delayed 5 days. Withdrawals 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 withdraw 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 withdrawal processes while maintaining the flexibility and security of our treasury funds.