# Purchases & Redemptions

### Purchases

Deposits allow users to mint liquid tokens by depositing $USC tokens. Deposits are processed through an ID based system to ensure proper liquidity management.

#### How Deposits Work

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**Onboarding**

Users must pass KYC verification.
{% endstep %}

{% step %}
**Submitting a Deposit**

Users submit deposit requests, which are added to the deposit queue with unique IDs and timestamps. The status of the deposit request is ***Pending***.
{% endstep %}

{% step %}
**Deposit Settlement/Fulfillment**

The fees are calculated based on the latest rates and $USC is sent to the treasury, while fees are sent to the specified fee treasury address. The status of the deposit request is ***Fulfilling*** or also called ***Settling***.
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**Processing Deposit**

$USC tokens are converted into liquid token shares using the current RWA/USD exchange rate from the oracle, and the tokens are minted.
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The tokens amount to be minted is calculated as:

$$
T= \frac{A \times \sigma}{\rho\_{\mathrm{USD}}}
$$

Where:

* **T** - Number of tokens minted
* **A** - $USC amount deposited
* **σ** - Scale factor
* **ρUSD** - RWA/USD rate (1:1 with $USC)

***

### Partial Deposit Cancellations

Operators can **partially cancel deposits** to manage liquidity:

* Deposits are refunded **up to a set limit**, ensuring only a portion is canceled if liquidity is limited.
* Partial cancellations stop when the set limit is reached, leaving any remaining deposits pending.
* This ensures liquidity can be controlled without fully refunding all deposits.
* The deposit cancellations are available in both ***Pending*** and ***Settling***/***Fulfilling*** stages.

***

### Redemptions

Redemptions allow users to convert liquid tokens back to $USC. There are two mechanisms:

* **Standard Redemption:** Wait for queue processing.
* **Instant Redemption:** Withdraw immediately up to a predefined limit.

The $USC amount is calculated as:

$$
A = \frac{T \cdot \rho\_{\mathrm{USD}}}{\sigma}
$$

Where:

* **A** - $USC to receive
* **Tm** - Number of tokens
* **ρUSD** - RWA/USD rate
* **σ** - Scale factor

#### Standard Redemption 

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{% step %}
**Eligibility**

Users must pass KYC verification.
{% endstep %}

{% step %}
**Submitting a Redemption**

Users submit a redemption order generating a unique request ID. Each request is stored in the withdrawal queue.
{% endstep %}

{% step %}
**Processing Redemption**

Operators process requests by converting shares to $USC using the latest oracle price. Shares are burned and $USC is minted to the user. Fees are deducted and sent to the treasury before $USC is transferred.
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{% endstepper %}

Available liquidity is set by the operator based on off-chain available funds in $USC.

#### Instant Redemption 

Instant redemptions provide users with immediate access to funds without waiting in the withdrawal queue. When a request is submitted, the system validates user eligibility, ensures the requested amount meets minimum withdrawal limits, and confirms that the request does not exceed instant redemption limits.

Instant redemption offers transparent pricing based on the latest strategy value from the oracle, making it suitable for urgent liquidity needs. Fees for instant redemption are higher than standard redemptions and are calculated and transferred to a fee treasury before the $USC tokens are minted to the user.

Instant redemptions are only available for principally protected assets and are restricted for volatile underlying assets.

#### Blacklisted Addresses

* If a redemption request involves a **blacklisted sender or receiver**, the request is canceled.
* Instead of returning shares, they are **forfeited to the treasury** until a dispute is resolved.


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