⬅️Withdrawals

Lear more about how to withdraw loan principal from the High Yield Corporate Bond Vault

Making a Withdrawal Request

Making a withdrawal request in the High Yield Corporate Bond Vault is a simple process.

1. Connect your whitelisted wallet to the OpenTrade app

2. Select the High Yield Corporate Bond Vault

3. Click "Withdraw"

4. Input the amount you'd like to withdraw

5. Click "Submit Withdrawal Request"

6. Approve in your wallet

7. After the Withdrawal Processing Time, USDC will automatically be sent back to your wallet and the corresponding amount of tokens will be burned.

User Guide

Withdrawal Processing Time

The Withdrawal Processing Time is the number of business days before a withdrawal will be repaid into your wallet.

The current Withdrawal Processing Time is maximum of 2 business days. Most withdrawals are processed T+1. Instant liquidity facilities are available on request for customers that meet certain eligibility criteria.

Withdrawal Cut-Off Time

The Withdrawal Cut-Off Time is the time in UTC before which withdrawal requests must be made to be considered same day. For withdrawals requests made before the cut-off time, they will be considered same day requests. For withdrawal requests made after the cut-off of time, they will be considered to have been made the next business day.

For withdrawal requests made on Non-Business Days (e.g. weekends and bank holidays), they will be considered to have been made on the next business day.

The Current Withdrawal Cut-Off Time is 6pm GMT.

Withdrawal requests can be made anytime. The Withdrawal Cut-Off time is used to calculate when the withdrawal processing time starts and thus when it is due to be repaid.

Exchange Rate Calculations - Withdrawals

The lender issues a withdrawal request by indicating an amount of vault tokens to be redeemed. This will provide an indicative withdrawal amount

Vault Tokens to be Redeemed * Exchange Rate  = Indicative Withdrawal Amount

The amount of vault tokens specifies the portion of the collateral to be liquidated.

Vault Tokens to be Redeemed / Total Outstanding Vault Tokens  = % Collateral to be Liquidated

The Investment Advisor will liquidate the portion of the collateral corresponding to the withdrawal request and confirm the net sale proceeds. The final withdrawal repayment will equal the net sale proceeds of the sale of your collateral.

Early Withdrawal Amount = Net Sale Proceeds of Liquidated Collateral

Example of Withdrawal Calculations

Collateral:

• 1,000,000.00 SHYG Shares @ $90.00 pps

• $1,000,000 cash

Closing Price T-1: $90.00

Total Vault Tokens Outstanding: 10,000,000

[ (1,000,000.00 SHYG Shares x $90.00 pps) + $1,000,000.00 ] – ($1801.80) / 10,000,0000 ]

Exchange Rate: 9.0998198200

Client A wants to redeem 1,000,000.00 tokens on T0.

The indicative withdrawal amount is:

1,000,000.00 x 9.0998198200 = 9,099,819.82 USDC

Percentage of the collateral to be liquidated is:

1,000,000.00 / 10,000,000.00 = 10%

The net sale proceeds of 10% of the collateral is:

$9,098,999.61

The withdrawal amount repaid to the Lender is:

9,098,999.61 USDC