New deposits are locked from withdrawing for a 24 hour period across all vaults to aid in flash loan and arbitrage protection.

When a user initiates a withdrawal from a vault, they are redeeming their vault tokens back to the vault at the Vaults Net Asset Value. Depositors receive their pro-rated share of underlying digital assets within the vault at the time the transaction is initiated.

Pro-rated is a term used to describe a "in proportion," which means distributions are in proportion to an individuals ownership of vault tokens. As an example, if an individual owns 30% of the total vault tokens outstanding, then they will receive 30% of whatever underlying assets are in the vault.

Depositors can also instead elect to receive their value in a single token asset. The dHEDGE protocol smart contracts contain the logic to accommodate each withdrawal type. Both types are described in detail below.

Single Asset Withdrawal

dHEDGE allows for a single asset withdrawal and depositors will have to select this option upon withdrawing from a vault. dHEDGE smart contracts will automatically liquidate the underlying positions in the vault pro-rata to an individuals ownership, and liquidate the positions into a single asset all in a single transaction. Thus, the underlying weights in the vault's positions never change upon an individual withdrawing.

The withdrawing user will contain the single asset designated at withdrawal in their wallet, still on the network in which the vault operates.

Underlying Assets Withdrawal

When exiting the trust minimized vault the depositor can choose to receive their share of the underlying positions in the vault. Meaning if the vault has 50% in Bitcoin and 50% in Ethereum and a depositor who withdrawals from the vault who owns 10% of the vault tokens, will receive 5% of the vault's Bitcoin position and 5% of the Ethereum in the vault upon withdrawing.

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