Settlement cycle

Two cadences. Allocations settle daily. Redemptions settle monthly. Each exists for a specific reason.

The two clocks:

Every vault runs two clocks in parallel.

Daily. Governs new allocations, NAV reporting, and operational adjustments inside the trading entity. This is the cadence the asset manager works to.

Monthly. Governs redemptions. On the first business day of each month, redemption requests from the prior period are processed in a single batch.

Why allocations settle daily:

Three things happen: verify your allocation, calculate shares at current NAV, communicate new capital to the asset manager. One business day.

Faster means the asset manager reacts continuously; noisy, more mistakes. Slower means idle capital. Your allocation is deployed into the strategy on the next business day.

Why redemptions settle monthly:

Positions can't always be unwound instantly without price impact or breaching risk limits. Daily redemptions would force asset managers to hold a larger cash buffer, dragging returns.

Monthly gives both sides a known window. Submit a redemption request any time. It processes at the start of the next month. Funds typically back in your wallet within the first week.

What happens on processing day:

First business day of each month, per vault:

1. The vault calculates total redemption amount across all requests.
2. The asset manager funds the redemption from the SMA.
3. Each redeemer receives their share of proceeds based on the share-to-asset ratio at the redemption NAV.

If queued redemptions exceed the asset manager's stated liquidity provision, redemptions are processed pro rata. This is rare and always communicated in advance.

Special cases:

Forced redemption. If the platform detects a regulatory or operational requirement to exit a vault (sanctions update, a breach of the strategy's agreed parameters), redemptions can be initiated outside the monthly window. A safety mechanism, not a general feature.

Soft close. An asset manager can pause new allocations without affecting existing positions or scheduled redemptions. Used when the strategy is at capacity. Existing allocations remain active in the strategy. The vault stops taking new flow until the asset manager reopens it.

What this looks like to you:

Invisible. Allocate today, deployed into the strategy tomorrow. Want out? Submit a request. Funds return start of next month. Your dashboard shows where you are in the cycle.