Redemptions

Settlement Price

Each SFT’s contract standards include the relevant settlement index to use. For example, SFTs using Deribit’s settlement index will hypothetically settle to the Deribit index price.

However, rather than relying on Chainlink or Pyth feeds to re-approximate the relevant venue’s settlement, each SFT amount will simply be tied to the actual settlement from its linked venue. This means that settlement amounts will be easily observable, both on venue, and with settlement movements into the relevant protocol wallets.

As a corollary, this also means that if settlement on venue were to ever fail (i.e., venue does not settle the correct amount or at all), the SFT would match that amount.

Redemption Prior to Expiry

Redemptions prior to expiry are possible but require for underlying hedge positions to be reversed. Such reversals are subject to the same trading heuristics and limits as minting positions.

Redemption After Expiry

Redemptions after expiry are automatically accommodated as the associated collateral will have already been settled between the protocol and the underlying hedging venue.