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Lockups & Redemption Windows
Every quoted yield comes with terms for getting your money back
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.
Read the redemption terms before the yield. Income only matters if you can get your money out when you need it.