How duPRT Redemptions Work

When depositors ask about liquidity on duPRT, the question is usually: "how quickly can I get out?" The answer depends on the settlement cycle of the invoices backing your position.

Why duPRT Redemptions Are Not Instant

duPRT is an ERC-7540 async vault. The async design is the product, not a limitation. Instant redemptions would require the vault to hold idle liquidity as a buffer, dragging down yield. Instead, the vault deploys capital into invoice receivables and returns principal plus profit as those invoices settle.

Phase 1 runs on 15net15 terms. PrimeTel's suppliers issue invoices twice monthly, roughly on the 1st and the 16th of each month. PrimeTel has 15 days from each invoice date to pay. That means settlement payments arrive approximately on the 16th and the last day of each month. These inflows are what fund redemptions.

How the Two-Step Redemption Works

The vault follows the ERC-7540 two-step flow:

Step 1: Submit a redemption request. You call requestRedeem on the vault contract. Your duPRT shares are locked. The vault records your request in a pending state. No payout happens at this point.

Step 2: Claim when fulfilled. The SukukFi operator processes pending redemption requests as settlement funds arrive from each invoice cycle. Once your request has been fulfilled, it moves from pending to claimable. You then call redeem to receive your stablecoins.

Your capital continues to accrue yield on the deployed portion until the operator fulfils your redemption request. The pending state does not freeze earnings.

A Worked Example

You deposited $50,000 USDT0 into the duPRT vault in early February. The vault deployed your capital into the PrimeTel invoice cycle on 15net15 terms.

On March 1, you submit a redemption request. Your 50,000 duPRT shares are locked as pending.

On March 15, a settlement payment arrives for the cycle invoiced on March 1. The SukukFi operator uses the incoming funds to fulfil pending redemption requests in the queue. Your position, including the yield that accrued from February to mid-March, is moved from pending to claimable. You return to the app, claim your stablecoins, and the vault transfers the amount to your wallet.

If settlement funds on March 15 are not sufficient to cover all pending requests, your redemption may be partially fulfilled or rolled to the next settlement on March 31. The operator processes requests in order as liquidity becomes available.

What Affects Your Timeline

Settlement timing. Payments arrive on the 15net15 schedule, so the longest you would typically wait from a request submitted immediately after one settlement to the next is approximately 15 days.

Queue depth. If multiple depositors have pending redemptions ahead of yours, the operator processes them in sequence as each settlement arrives. A larger queue means your redemption may span more than one settlement cycle.

Vault deployment rate. If the vault is actively redeploying settlement proceeds into new invoice cycles, the operator balances redemption fulfilment against continued deployment. The vault is designed to serve both: capital that exits does not get redeployed; capital that stays earns.

What This Means Practically

You cannot choose an exact exit date. The timeline depends on settlement arrivals and queue position. For most depositors at current vault size, a redemption request submitted at the start of an invoice cycle is typically fulfilled within one to two settlement periods.

Your capital earns until it exits. Yield accrues on deployed capital until the redemption is fulfilled. You are not penalised for waiting in queue.

Redemption requests are not cancellable mid-process. You can request cancellation while your redemption is still pending, but once the operator has allocated settlement funds to your request, the process completes.

Why This Structure Exists

Offering instant redemptions backed by invoice receivables would require the vault to hold a permanent liquidity reserve that earns nothing. That idle buffer drags yield for all depositors to subsidise immediate exits.

The async structure makes the tradeoff explicit: earn full yield on deployed capital, accept that exits follow the settlement cycle. For capital with a horizon measured in weeks rather than days, that is the right tradeoff.

trUST is a separate instrument designed for CommTrade settlement participants, not for yield investors. It mints 1:1 against stablecoins and also uses ERC-7540, with operator approval required for both mint and redemption. The async design serves a different purpose there — access control rather than settlement timing.

Questions about the redemption queue? The app shows your pending redemption status in real time. For a deeper look at the vault mechanics, read the technical documentation.