> For the complete documentation index, see [llms.txt](https://docs.kpk.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kpk.io/funds/infrastructure/core-concepts/redemptions.md).

# Redemptions

A redemption is a **user's request to exit the fund** by returning shares in exchange for one of the approved payout assets (for example USDC), priced against the current NAV.

<figure><img src="/files/3gCyc6EfhuheuzW5Ov8t" alt="Redemption flow: a holder requests a redemption, shares are escrowed, the operator settles at a price, a redemption fee is taken, the rest is burned, and assets are paid from the Portfolio Safe."><figcaption><p>The redemption lifecycle.</p></figcaption></figure>

## Lifecycle

{% stepper %}
{% step %}
**Request.** The holder calls `requestRedemption(sharesIn, minAssetsOut, redemptionAsset, receiver)`. The shares are pulled into **escrow** inside the `kpkShares` contract, a `PENDING` request is recorded, and a `RedemptionRequest` event is emitted. `minAssetsOut` is **slippage protection**, applied to the amount **after** the redemption fee. The `redemptionAsset` must be approved for redemptions (`canRedeem = true`), otherwise the call reverts with `UnredeemableAsset`.
{% endstep %}

{% step %}
**Settlement.** An operator calls `processRequests(approveIds, rejectIds, asset, sharesPrice)`. For each approved redemption it takes the **redemption fee** in shares (`fee = sharesIn * redemptionFeeRate / 10_000`) and transfers it to the fee receiver, computes `assetsOut = sharesToAssets(sharesIn - fee, sharesPrice, asset)`, checks `assetsOut ≥ minAssetsOut`, **burns** the net shares from escrow, and transfers the assets from the **Portfolio Safe** to the `receiver`. The request becomes `PROCESSED` and `RedemptionApproval` is emitted (including the `redemptionFee`).
{% endstep %}

{% step %}
**Or rejection / expiry / cancellation.** As with subscriptions, an operator can reject a request (`RedemptionDenial`), an expired request is auto-rejected (`RedemptionRequestExpired`), and the holder or receiver can cancel while `PENDING` once the TTL has elapsed (`cancelRedemption(id)`). In every case the escrowed shares are returned.
{% endstep %}
{% endstepper %}

## The request event

```solidity
event RedemptionRequest(
    address indexed investor,
    uint256 requestId,
    address indexed receiver,
    address indexed redemptionAsset,
    uint256 assetsAmount,   // the minAssetsOut at request time
    uint256 sharesAmount,   // shares being redeemed
    uint64  timestamp,
    uint64  cancelableFrom, // timestamp + redemptionRequestTtl
    uint64  expiryAt        // timestamp + 7 days
);
```

This mechanism lets users exit at transparent, NAV-aligned terms while the fund manages liquidity and the pacing of outflows. See [Redemption request](/funds/integration/redemption-request.md) for integration code and [Fees](/funds/infrastructure/core-concepts/fees.md) for how the redemption fee fits alongside management and performance fees.


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