Redemption Terms & Liquidity Reality

Private Credit · Lesson 6.4

Most private credit tokens offer redemptions on a schedule, often weekly, monthly or quarterly. The schedule describes the manager's intent. It is not a guarantee, because the loans in the pool do not mature on the same timetable. If redemption requests outpace repayments and new money, the manager may draw on cash reserves, then use gates that delay or cap withdrawals. Evergreen funds and fixed-term funds handle this differently, and the difference shows most in stressed markets. Check whether the redemption terms have ever been tested, and what happened.

Wally’s note: window: open* *until everyone leaves at once

A redemption schedule is a policy, not a promise. Check how it held up when many investors wanted out.

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