> For the complete documentation index, see [llms.txt](https://docs.infrastructure.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.infrastructure.finance/usd.infra-vault/liquidity-and-redemptions.md).

# Liquidity and Redemptions

**TLDR:**

* There are two ways to exit: sell sUSD.infra on a DEX at market price, or redeem sUSD.infra for USD.infra through the protocol, subject to available liquidity.
* Liquidity is managed through an undeployed liquidity sleeve and redemption policies designed to reduce forced liquidations.

## **How redemptions work**

The USD.infra Vault supports two distinct exit paths:

1. **Secondary market exit (DEX):** Users can sell sUSD.infra on supported secondary markets at the  market prices. Market price may differ from exchange rate based on liquidity, demand, and market conditions.
2. **Protocol redemption (sUSD.infra → USD.infra):** Users can redeem sUSD.infra for USD.infra through the protocol, subject to available Vault liquidity and redemption policy. Redemptions are intended to reflect the published exchange rate, but fulfillment depends on reserved liquidity and broader redemption conditions at the time of request. Protocol redemptions are processed on an epoch basis, subject to Vault liquidity and the policies described here.<br>

These constraints exist because digital infrastructure assets are not instantly liquid. The redemption framework is designed to reduce forced liquidations, preserve fairness across participants, and keep exit mechanics aligned with the underlying cashflows of real infrastructure.<br>

<figure><img src="https://593500218-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fmj2D1HjrTLSdWQrQyxfE%2Fuploads%2Fi039bdjAA7EUoKeLINfW%2FLiquidity%20%26%20Redemptions_New_Version.jpg?alt=media&amp;token=b5f928f3-32fa-43bc-86c3-204394e521a9" alt=""><figcaption></figcaption></figure>

## **Liquidity Management & Queues**

Because the USD.infra Vault finances real-world infrastructure, it uses a combination of:

* **Liquidity sleeve:** A portion of Vault capital remains undeployed to support redemptions.
* **Redemption policies:** Redemptions are fulfilled based on available liquidity and protocol rules designed to avoid forced liquidation dynamics.

The current guidance is that approximately 40–50% of TVL may remain undeployed.