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Fusion supports sophisticated redemption mechanisms designed to balance user liquidity needs with strategy requirements and market conditions.
Instant Path: Fulfills redemption requests immediately using unallocated cash or by triggering "Instant Withdrawal Adapters" that exit highly liquid positions in a pre-configured order of priority.
Scheduled Path: For larger redemptions or less liquid positions, a three-phase process (Request → Release → Redeem) allows the Portfolio Manager to exit or unwind positions accounting for market conditions for minimal economic impact. This also aligns with Asset-Liability Matching (ALM) and protects the vault against liquidity mismatches.
Valuation is performed natively onchain, ensuring that entry and exit prices are always based on verifiable, current underlying asset values.
Automated Valuation: Balance Fuses query the vault's real-time positions in external protocols, while the Price Oracle Middleware standardizes these values into a single USD-denominated Net Asset Value (NAV).
Virtual Asset Accounting: For complex institutional requirements, the protocol supports "Virtual Assets." This feature allows for the accounting of Real-World Assets (RWAs) or credit positions that may not have constant onchain price discovery, such as tokenized private credit, accrued off-chain interest, or illiquid structured products.
Hybrid Accounting Models: Curators or trusted third parties (such as external auditors or valuation agents) can manually update the balances or valuations of these virtual assets through a governed process. This ensures that the total NAV accurately reflects the mandate's true economic value, bridging the gap between high-frequency DeFi liquidity and the periodic reporting cycles of traditional asset classes.
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