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Withdrawing

New deposits are locked from withdrawing for a 24 hour period across all Pools. This is to aid in flash loan and arbitrage protection.
When an investor initiates a withdrawal from a Pool, they redeem their shares back to the Pool at the Pool's Net Asset Value. Investors will receive their pro-rata share of funds within the pool at the time the transaction is initiated.
Pro rata is a term used to describe a "in proportion," which means distributions will be in proportion to an investor's ownership. As an example, if an investor owns 30% of the total Pool tokens outstanding, then they will receive 30% of whatever underlying assets are in the pool.
Investors can elect to receive their pro-rata portion of each position currently in the Pool, or elect to withdraw their value in a single token asset. The dHEDGE protocol smart contracts contain the logic to accommodate an investor's withdrawal type. Both types are described in detail below.

Single Asset Withdrawals

dHEDGE allows for a single asset withdrawal and investors will have to select this option upon withdrawing from a Pool. dHEDGE will automatically liquidate the underlying positions in the pool pro-rata to an investor's holdings, and liquidate the positions into a single asset all in a single transaction. Thus, the underlying weights of the pool’s positions never change upon an investor withdrawing.
The investor’s wallet will contain the single asset designated at withdrawal, still on the network in which the Pool operates (Ethereum V1, Polygon V2, or Optimism V2).

Fast Oracle Exchange (FOX)

Fast Oracle Exchange (FOX) is a gas-saving measure on Ethereum layer 1, which can reduce the gas cost of investing or exiting from dHEDGE pools by 90%.
FOX is a secondary market for dHEDGE pools. This means FOX requires liquidity to be enabled (a DHPT and stablecoin pair).
If there's enough liquidity on FOX, it will be enabled by default, and you can invest any stablecoin from the dropdown, as well as withdraw to any stablecoin with liquidity. If there's insufficient liquidity in FOX, it will default to a regular deposit and regular withdrawal. With a regular withdrawal, the underlying assets are withdrawn, reflecting the composition of the pool.
The FOX Oracle talks to an Ethereum node and asks for dHEDGE pool data, including relevant Chainlink asset prices. FOX then signs the pool data and gives it to the investor who can choose to use the data on-chain to execute transactions such as to invest or exit.
This also means investing or withdrawing with FOX does not trigger the performance fee "mint" action for dHEDGE pools.
The FOX transaction includes a timestamp. The transaction must be set to "Fast" execution, otherwise, the transaction will timeout and fail.
FOX is enabled only on the Ethereum mainnet.

Underlying Assets Withdrawals

When exiting the pool the investor can choose to receive its share of the underlying positions in the pool. Meaning if the Pool has 50% in Bitcoin and 50% in Ethereum and an investor who withdrawals from the Pool owns 10% of the Pool tokens, they will receive 5% of the Pool’s Bitcoin position and 5% of the Ethereum in the Pool upon withdrawing.
Last modified 4mo ago