> For the complete documentation index, see [llms.txt](https://docs.ipor.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ipor.io/fusion-for-institutions/lifecycle-and-liquidity-management.md).

# Lifecycle & Liquidity Management

Fusion supports sophisticated redemption mechanisms designed to balance user liquidity needs with strategy requirements and market conditions.

## **Multi-Pathway Redemptions**

* **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.

## **Real-Time NAV & Virtual Asset Accounting**

Valuation is performed natively onchain, ensuring that entry and exit prices are always based on verifiable, current underlying asset values.

* **Automated Valuation:** [**Balance Fuses**](/build-on-fusion/developer-guide/balance-fuses.md) query the vault's real-time positions in external protocols, while the [**Price Oracle Middleware**](/build-on-fusion/developer-guide/price-oracle-middleware.md) 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.