Redeem Policies
The withdrawal policies of Solomon DeFi Vault are designed to ensure the integrity of the fixed yield system while providing users with options for accessing their funds if needed. However, it's important to understand the implications of early withdrawals.
Early Withdrawal
If you need to withdraw your funds before the maturity date, you may face penalties.
These penalties are designed to account for the loss of potential earnings and the liquidity impact on the vault. Early withdrawals may result in a lower return than originally anticipated.
Liquidity Loss
By committing to a fixed term, you are locking your funds for the duration of the investment.
If you wish to withdraw early, you may face a liquidity loss, as the vault's strategies are based on the assumption that funds will remain invested for the full term.
Interest Payout Expectations
If you are expecting to earn and withdraw interest monthly but have chosen a 3-month vault, early withdrawal will disrupt this expectation. Fixed yield investments are designed to pay out at maturity, not on a monthly basis.
Attempting to withdraw monthly from a fixed-term vault will not yield the expected interest and could result in penalties.
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