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Redeeming turns your fund shares back into assets. It follows the same batched model as depositing, with one extra stage: because the fund’s capital is often deployed in strategies at settlement time, the fund must first bring assets back before a settled redemption can be paid out.

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The timeline

1

Request

You call redeem(asset, shares) on the RedeemQueue, choosing which allowed asset you want to be paid in. You approve the share token first; the queue pulls your shares into escrow. The RiskManager enforces minimums and batch caps. Your request joins the current batch.
2

Settle

When the batch’s report is accepted, the queue transfers the batch’s shares to the Fund (which burns them) and snapshots the payout amount — the assets you’re owed, computed at the accepted price minus the exit fee. Because it’s snapshotted here, later changes to the exit fee or price cannot change what your batch is owed.
3

Fund

Settlement only records what’s owed. The operator then brings the assets back to the Fund — pulling them from strategies, or receiving them back from external wallets or bridges — and calls fundRedeem to deliver them to the queue. The batch is now claimable.
4

Claim

You call claimRedeem(asset, batchId) and receive your pro-rata assets.

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Why the extra “fund” stage exists

In a fully on-chain vault, assets are always sitting in the contract, so a withdrawal can pay out immediately. In a Red Potion fund, capital is usually working — in strategies, in custody, or on another chain. Settlement fixes the amount you’re owed at a fair price; funding is the separate, operator-run step that actually returns the assets. This decoupling is what lets a fund deploy capital productively while still honoring redemptions at a fair, snapshotted price. The tradeoff: the time between settlement and funding depends on how quickly the operator can unwind and return capital. Funds should document their expected redemption timing.

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Claiming — the math

Your payout is pro-rata to your share of the batch’s redemptions:
where batchAssetTotals is the payout snapshotted at settlement (net of exit fee).

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Cancelling

You can cancel your current-batch redemption before it settles with cancelRedeem(asset), and your shares are returned. After settlement you can no longer cancel — you wait for funding and then claim. (An admin can cancel a stuck request in any unsettled batch, returning your shares.)

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One request per batch

As with deposits, you can hold at most one redemption request per asset per batch.

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What can block a redemption

See Risk Controls.