Exit guarantees
An eToken holder is never trapped. Exits form a waterfall of four tiers; each tier only matters if every tier above it failed to fill.
| Tier | Path | Speed | Requires |
|---|---|---|---|
| 1 | Maker fill: a market maker quotes your redeem and settles at the spread | Instant | A live maker |
| 2 | PSM in-kind redemption: burn the eToken, receive the wrapper token from reserves | Instant | Reserves (kept 1:1 by design); works off-hours and for halted assets |
| 3 | Claim window: an unfilled resting redeem order ages past the claim threshold | Waiting period | Nothing; the wait is the grace window for a fair maker quote |
| 4 | Force-execute: the order's owner settles it themselves against an approved LP collateral vault at the fresh oracle price | Self-serve after tier 3 | A fresh oracle proof (2-minute freshness) |
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Properties worth knowing
- Holders are never liquidated. eTokens are fully paid exposure, not margin positions. The waterfall is about getting out, never about being forced out.
- Force-execution is solvency-positive. Every forced claim retires exposure against collateral, so each one strictly improves system utilization. The mechanism cannot spiral.
- Tier 2 is the everyday backstop. Because reserves track issuance 1:1, PSM redemption is almost always available, instant, and fee-free, including nights, weekends, and asset halts.
Current configuration
The claim threshold is a governance-armed parameter designed at 48 hours. It is currently set to 0 with force-execution switched off while reserves and the PSM cover all redemption flow; governance arms it as LP vault depth grows. The PSM tier is unaffected and live.