REDEMPTION
  • REDEMPTION
    • Redemption Token (RDTN)
    • RDBN (Puttable Bonds)
    • Redemption Platform / dApps
    • Redemption DAO
  • How to Earn?
    • Redemption Bonds
      • Features
      • Redemption Bonds Prizes & Lucky Draw Periods
      • Bond Serial Number & Important Terms
      • Bonds Issuing, Locking & Lucky Draw Dates
      • How Do Redemption Bonds Work?
      • Why Redemption bonds?
      • Technical Specifications
        • Issuance of Redemption Bonds
        • Collateral Pool Management
        • Collateral Size Determination & Oracle
        • Management of Bonds
        • Redemption of Bonds
        • Prize Pool Calculation
        • Burning The Bonds
        • Redemption Bonds Workflows
    • Staking
      • Staking Pools Duration
      • Why Stake Redemption Tokens?
      • How To Earn With Staking?
    • Lottery
      • Lottery Pools & Probability to Win
      • Lottery Pool Value & Prize Distribution
      • How The Winning No Is Drawn?
      • How To Play The Lottery?
  • How to Get RDTN?
  • DAO
    • Functions of DAO
    • Guilds, Their Selection & Compensation
    • Why Participate in The DAO?
    • How DAO Voting Works
    • How Does DAO Treasury Work?
    • Funds Management With Multisig Wallets
    • Funds Allocation to Guilds
    • How To Vote?
  • Invest in Pre-IDO
    • Why Invest in Pre-IDO?
    • How to Buy Redemption Before IDO?
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  • Before Maturity
  • At Maturity

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  1. How to Earn?
  2. Redemption Bonds
  3. Technical Specifications

Redemption of Bonds

How Will Bonds Be Redeemed (Both Before and At Maturity)

Before Maturity

To redeem a bond before maturity, the bondholder will use the Redemption Bonds dApp, which will call the redeem function on the smart contract and specify the number of bonds they wish to redeem. The smart contract will then transfer the face value of the bonds to the bondholder's account and release the required collateral from the collateral pool. The formula for calculating the required collateral to release is:

requiredCollateral = redeemedBonds * bondDenomination * collateralizationRatio

Where redeemedBonds is the number of bonds being redeemed.

At Maturity

To redeem a bond at maturity, the bondholder can simply hold onto the bond until it reaches maturity. At maturity, the bondholder will call the redeem function on the smart contract and the face value of the bond and Profits earned will be transferred to the bondholder's account.

When a bondholder wants to redeem their bond at maturity, they can simply call the redeem function on the smart contract using dApp. The smart contract will then calculate the face value of the bond and the profits earned based on the bond's denomination and the maturity period. The profit calculation is based on a fixed rate of return for a fixed period. The smart contract uses a formula to calculate the profit based on the face value of the bond, the profit rate, and the maturity period. The formula for calculating profit is:

Total Transferable Value = Denomination * (1 + Profit Rate * Maturity Period)

Where:

‘Denomination’ is the value of the bond denomination

‘Profit Rate’ is the fixed profit rate offered by the Redemption Bonds

‘Maturity Period’ is the number of days between the issuance date and maturity date

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Last updated 2 years ago

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