Redeem
The investor gains the ability to claim their portion of the asset, after the end of the sale, the investor can exchange his fractional ownership for a portion of the wrapped assets by:
How Does It Work?
- Initiate Unwrapping: The investor decides to unwrap their fraction and initiates the process through the platform.
- Fraction Assessment: The platform assesses the value and proportion of the fraction relative to the wrapped assets.
- Asset Allocation: The investor is allocated a proportional share of the underlying assets based on their fractional ownership.
- Completion: The transaction is completed, and the investor receives their share of the assets.
Partially Unwrap
This feature enables users to detach a portion of the tokenized asset while keeping the remainder active within the tokenized ecosystem. Partial unwrapping is especially useful in scenarios where only a part of the asset needs to be liquidated or redeployed.
Re-wrap
After an asset or a portion of an asset has been unwrapped, circumstances may change, necessitating its return to a tokenized state. The "re-wrap" feature allows for the asset to be re-entered into the tokenization platform, possibly with different parameters or within a new context. This capability is essential for maintaining the flexibility and responsiveness of asset management strategies, adapting to market conditions or strategic shifts in portfolio management.
Redemption Scenario
An investor has purchased fractional ownership in a tokenized asset through the Token Market Infrastructure (TMI), Then he decides to redeem his tokens to gain direct ownership of a portion of the asset.
The investor:
- Buy 10% of the tokenized asset, which is represented by ERC-20 tokens on the blockchain.
- Access portfolio on the Token Market Infrastructure (TMI) dashboard and select the option to redeem his tokens.
- The TMI calculates the value and proportion of investor’s ownership. Since he owns 10% of the tokens, he is entitled to 10% of the underlying asset.
- Receive ownership documentation or an equivalent share of the asset value, depending on the terms set by the market creator.
- Successfully exchange his fractional tokens for a direct stake in the asset, completing the redemption process.
Updated 5 months ago