Redeem a holding

Outcome: Investor requests redemption of an existing fund holding, Issuer completes the fund-level pricing and fulfillment work, and Investor receives confirmed proceeds. Administrator provides all-fund and all-issuer oversight or handles exceptions. Redemption returns proceeds, never shares. A wallet withdrawal is a separate cash operation after proceeds arrive in the wallet.

Owner and application

• Actors: Investor, Issuer, and Administrator
• Applications: One Torque investor experience and Issuer workspace
• Supporting owners: Investment, custody, wallet, payout, and notification services
• Conditions: An existing holding is eligible, redemption request is permitted, price and approval conditions are complete, liquidity is available for fulfillment, and the selected proceeds path is available.

Normal path

1. Investor signs Vault.requestRedeem from the existing holding view for the requested share quantity.
2. Issuer reviews the redemption identity and exact share quantity, enters the applicable USDC price per share, and posts POST /auth/funds/{slug}/redemptions/{redemption_id}/approve. Administrator provides all-fund and all-issuer oversight or handles an exception outside Issuer scope.
3. The applicable fund-wallet owner signs Vault.fulfillRedeem(shares, assets, investor) through the existing verification-code handoff after pricing approval and liquidity checks. The owning service records the fulfillment result.
4. Fulfillment reserves USDC and makes the proceeds claimable. It does not claim proceeds for Investor or return shares.
5. Investor claims the proceeds with Vault.redeem(shares, investor, investor), the Investor-authorized claim operation.
6. The owning service confirms the proceeds receipt. The redemption is complete only after that confirmed receipt, not when it is merely claimable.
7. Investor can use Wallet Withdraw as a subsequent, separate cash operation. That withdrawal is not redemption.

Failure, cancellation, and recovery

• An ineligible holding or unavailable price returns an actionable status to Investor or Issuer.
• An interrupted fund-owner signing flow keeps the prepared fulfillment operation so the owner can resume the exact operation.
• A fulfillment failure keeps the persisted redemption, approved price, and operation record. The owning service reconciles liquidity and operation state before a permitted retry.
• A claim recovery refreshes the persisted claimable proceeds record and resumes the existing Investor claim. Claimable is not a confirmed proceeds receipt.
• Investor cancellation of an unfulfilled request follows the permitted state and service rules.
• Recovery reconciles request, fulfillment, and claim status before a retry or new action. It does not create a duplicate redemption or claim.

Handoff and evidence

Handoff	Receiving owner	Completion evidence
Request to pricing	Issuer	Redemption request, exact share quantity, price record, and approval
Price to fulfillment	Issuer and applicable fund-wallet owner	Approved price, liquidity check, signing operation, and fulfillment instruction
Fulfillment to claim	Investor experience	Confirmed fulfillment, reserved USDC, and claimable proceeds record
Claim to completion	Investment and custody services	Investor claim result and confirmed proceeds receipt
Proceeds to cash withdrawal	Wallet service	Wallet credit and separate withdrawal transaction, if Investor requests it
Provider failure to recovery	Administrator and owning service	Error context, state, audit entry, and recovery owner

See Portfolio and servicing, Withdraw Funds, and the state lifecycles.