Redemptions
How to exit your USDQ position and reclaim assets
While users can sell USDQ on external markets at any time, the protocol also offers on-chain redemption options for those who wish to directly exchange their USDQ back into supported assets.
There are two redemption types:
Classic Redemption – for stablecoin payouts
Claims – for reclaiming non-stablecoin collateral
Both types of redemptions are subject to a 7-day cooldown period before assets are released.
Cooldown Period
The cooldown period allows the protocol to:
Securely unwind yield strategies；
Ensure redemption liquidity；
Protect system-wide solvency.
This mechanism ensures redemptions are fulfilled in a sustainable and risk-managed manner.
❗Note: This is not the same as unstaking sUSDQ. Unstaking returns USDQ instantly, while redemptions convert USDQ into collateral.
1. Classic Redemptions (Stablecoin Payout)
Users can redeem USDQ for supported stablecoins such as USDC or USDT via the classic redemption path.
1 USDQ = $1 worth of stablecoins (minus any applicable fees)
Assets are delivered after the 7-day cooldown
This option is typically used by Classic Mint participants or passive holders who wish to exit into fiat-backed assets.
2. Claims (Non-Stablecoin Collateral)
For users who originally minted USDQ using non-stablecoin collateral, redemption is done via claiming.
For Classic Mint Users:
You can reclaim your original crypto collateral or choose from:
100% in original asset；
100% in USDT；
Or a mix of both；
This may also include recovery of your OCR buffer, depending on market conditions.
For Innovative Mint Users:
Claims can only be initiated after your term has matured；
To reclaim full collateral:
Repay the amount of USDQ originally minted；
Your position must not have been liquidated or exited due to price reaching the strike level；
You have a 72-hour claim window after maturity to recover the full position.
See: Innovative Mint for outcomes that affect claim eligibility.
Summary Table
Classic
Stablecoins (e.g. USDC)
Anyone with USDQ
7 Days
Claim (Classic)
Original collateral / USDT / both
Minted with non-stablecoins
7 Days
Claim (Innovative)
Original collateral (if eligible)
After term maturity + no liquidation
7 Days + 72h window
USDQ redemptions provide a flexible, secure way to exit your position while preserving system integrity. Whether you're looking to rotate back to stablecoins or reclaim collateral, the protocol ensures a fair and transparent process.
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