# Open Liquidity Architecture Midas provides investors with access to highly liquid and composable onchain instment products. Bridging the gap between continuous onchain environments and legacy financial systems often exposes inherent settlement delays and capital drag. To solve this, we have created an Open Liquidity Architecture to enhance liquidity where traditional inefficiencies emerge. This architecture ensures instantaneous, on-demand access, bridging these settlement gaps while maintaining maximum capital efficiency and seamless composability for your investments. **Midas Open Liquidity Architecture**
#### Choosing Your Redemption Method When redeeming, you can choose between standard and instant redemption, corresponding to the two functions embedded in the smart contract: * **Standard Redemption:** This option is fee-free and follows the natural settlement timeline of the underlying assets. Redemption requests accumulate and are processed after the next price update, i.e. the next time the Net Asset Value (NAV) of the portfolio is determined in line with our standard processes (click [here](/transparency/pricing-of-the-mtoken.md) for more information). The scheduling of the next price update depends on the specific strategy and can span several days or weeks. For some strategies, the redemption request needs to be submitted within a specific window prior to the next price update in order to be processed in the next redemption cycle. * **Instant Redemption:** This option provides on-demand liquidity, allowing you t skip the standard waiting period and settle your withdrawal immediately into a stablecoin like USDC. Because this feature draws on a dedicated liquidity pool, it is subject to available capacity and incurs a fixed instant redemption fee. The smart contract executes this in a single, immediate transaction: it checks the current NAV, burns your mTokens, and returns the stablecoins directly to your wallet. > :warning: In order to protect tokenholders, Midas has standard emergency processes. We may pause deposit and redemption facilities in the event of, but not limited to, external security incidents (e.g., hacks in the broader market), external depeg events, external bad debt events, technical failures, internal security incidents, or extreme market volatility, that create contagion risks. We may take this action if current market conditions introduce any level of uncertainty regarding the validity of the latest mToken price. This precautionary measure can be enacted even when Midas has no direct exposure to the incident, acting proactively to ensure equitable treatment and protect the value of all tokenholders. We expect these situations to be limited to a few hours or days, and we will gradually re-establish deposit and redemption processing as soon as the broader market uncertainty clears. #### Internal Liquidity Sleeve For certain products, Midas employs an Internal Liquidity Sleeve as a first layer to process instant redemptions. In this structure, a small portion of the invested capital (typically up to 10% of the total value locked) is allocated to a highly liquid investment buffer, which can include, for example, direct holdings in USDC or mTBILL. Because the mTBILL token itself features atomic redemption, other tokens can leverage this to meet instant redemption requests. However, instant redemption capacity for mTBILL is also subject to availability, meaning it can constrain the instant redemption capacity of other mTokens if fully utilised. The assets held within the internal sleeve remain a component of the overall portfolio and are included in the Net Asset Value (NAV) assessment of the token and hence the APY calculation. As the yield generated by this liquid portion is generally lower than the main strategy's returns, it introduces a cash drag on the overall portfolio. Please note that this internal sleeve is tailored to specific strategies, and not all Midas tokens feature this allocation. #### Frequently Asked Questions
I requested a redemption. When will I receive my funds? *The timeline for receiving your stablecoins depends on the type of redemption you selected:* * ***Instant Redemption:**** **Your funds are delivered to your wallet immediately at the current NAV, net of the instant redemption fee.* * ***Standard Redemption:**** **It typically takes a few days for your transaction to settle. Your request is processed at the NAV prevailing at the time of fulfilment (which usually ranges from T+2 to T+X, depending on the product). The approximate time to settlement is clearly displayed on the interface before you confirm your withdrawal.*
Do you charge fees for redemptions? *While enhanced redemption facilities may incur a fee, we always offer free-of-charge standard redemption as an option. This redemption path follows the natural settlement timeline of the underlying asset, which can range from days to weeks. Please check your specific product's offering documentation for exact timeframes.*
My redemption request fails. What can I do? *Midas smart contracts run continuous background verifications to ensure compliance and security. If you encounter an error during the redemption process, it is typically due to one of the following reasons:* * *Regulatory restrictions tied to your jurisdiction have changed.* * *The vault's capacity for Instant Redemptions is currently insufficient. (If this happens, you can toggle to the Standard Redemption option to complete your withdrawal).* * *Your wallet or account requires updated compliance verifications.* *If you have tried the Standard Redemption route and are still encountering an error, please contact our* [*Support*](/resources/support.md)*. Our team will review your case and assist you as quickly as possible.*
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