Early Withdrawal Guidelines
While Solomon DeFi Vaults are designed to provide fixed yields at maturity, we understand that circumstances may require early access to your funds. However, there are important guidelines and potential penalties to consider:
Penalties for Early Withdrawal
If you withdraw your funds before the maturity date, you may face penalties.
These penalties are designed to compensate for the loss of potential earnings and to maintain the integrity of the vault’s investment strategies.
The penalty amount is typically a percentage of the interest you would have earned.
Impact on Liquidity
Early withdrawals can affect the liquidity of the vault, potentially impacting other investors.
To mitigate this, the platform may impose a waiting period or additional fees for early withdrawals.
Interest Forfeiture
In most cases, withdrawing early means forfeiting some or all of the interest you would have earned.
For example, if you were expecting to earn 50 USDC in interest over a 3-month term, withdrawing after just 1 month might result in only a fraction of that interest, or none at all.
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