Redemptions
How to exit your Compost position.
Two Exit Paths
1. Protocol Redemption
Standard withdrawal through the vault.
- Burn cHYPE — initiate withdrawal
- HYPE queued for withdrawal
- 14-day unstake period (Hyperliquid protocol constraint)
- HYPE released after queue clears
No fee on principal. Protocol fee is already taken on yield.
2. Secondary Market
Instant exit via DEX.
- Sell cHYPE on DEX
- Receive HYPE (or other token) immediately
- No protocol interaction required
Price may differ from NAV — premium or discount depending on demand.
Comparison
| Aspect | Protocol Redemption | Secondary Market |
|---|---|---|
| Speed | 14 days | Instant |
| Price | NAV (exact) | Market (variable) |
| Slippage | None | Depends on liquidity |
| Fees | None | DEX fees + slippage |
Liquidity Buffer
20-30% of vault is kept in validator staking (not HIP-3 allocated).
Purpose
| Function | Benefit |
|---|---|
| Cover normal redemptions | No need to unwind HIP-3 positions |
| Maintain base yield | Earning during rebalancing |
| Shorter queue | 7 days vs 14 for validator unstaking |
Large Redemptions
Redemptions >5% of vault may be processed in tranches.
Why
- Avoid market impact
- Prevent forced position unwinding
- Maintain orderly operations
Process
- Initial tranche processed (up to 5%)
- Remaining amount queued
- Processed as liquidity becomes available
- Full communication throughout
Edge Cases
| Scenario | Handling |
|---|---|
| Bank run | Redemptions processed FIFO, HIP-3 positions unwound as needed |
| Market dislocation | Secondary market price may diverge from NAV |
| Slashing event | Loss absorbed pro-rata by all cHYPE holders |
Queue Status
Check your withdrawal status:
- On-chain: Query vault contract
- Dashboard: [TBC]
- API:
GET /withdrawal/{queueId}
INFO
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