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Lockups & Redemption Windows

Every quoted yield comes with terms for getting your money back

Yield & Returns · Lesson 5.2

Lockups and redemption windows are two different limits on getting your money back. A lockup is a period during which you cannot redeem at all. A redemption window is the schedule on which redemption requests are processed. Many tokenized Treasury funds process requests daily. Private credit and real estate products often redeem monthly or quarterly with a notice period, so a request made today may take weeks to complete. Products that offer faster redemption than their assets allow usually hold extra cash to cover it, which can lower returns.

Wally’s note: exit opens: next quarter. notice period: also yes.

Read the redemption terms before the yield. Income only matters if you can get your money out when you need it.

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