Withdrawal & Unstaking Mechanics

No additional yield accrual

Once a withdrawal or unstaking request is initiated, the user’s assets are scheduled to be removed from yield-bearing strategies. From this point forward, these assets no longer accrue additional protocol yield.

Pre-withdrawal scheduling

Assets are systematically withdrawn from active positions and moved into the Vault Runtime no later than 48 hours before the lock period ends. This provides a buffer to unwind positions without slippage pressure and ensures assets are liquid and available at unlock.

Automatic asset conversion

When users withdraw, the protocol unwinds the necessary yield-bearing positions and redeems enough liquidity to cover the full withdrawal amount. From the user’s perspective, funds are always paid out in full.

• Realized IL: Any impermanent loss embedded in the exited positions is crystallized as realized IL at the time of withdrawal.

• Reserve Fund Coverage: The realized IL is then covered by the IL Reserve Fund, which absorbs the shortfall.

• Asset Conversion: Prime Strategy automatically swaps the unwound positions back into the requested asset(s) (e.g., USDC, ETH) before delivery to the user.

Yield redistribution

Yield generated from assets that are unwound early (before the lock expires) is redistributed to remaining stakers in the vault. This creates a natural long-term staking incentive, as users who stay staked longer capture more residual yield. It also maintains fairness and efficiency in capital distribution.