When you request to redeem your investment from a fund, the process involves several steps and requires time to complete. This article explains what happens after you submit a redemption request and why your funds may not appear in your account immediately.
The Multi-Step Redemption Process
Step 1: Approval Phase
After you submit a redemption request, the following occurs:
Funds Manager review: Your redemption request is sent to the Funds Manager for approval.
Approval timeline: The Funds Manager needs to review and approve your request.
Automatic approval: If the Funds Manager doesn't approve or doesn't see the email notification within 48 hours of your redemption request, the system will automatically approve the redemption.
Step 2: Redemption Record Created (Day 0)
Once your redemption request is approved:
A redemption record is automatically created in the system.
You can view this record in Funds Management → Investor → My Actions.
Important: At this stage, the redemption record shows no specific amount yet.
Step 3: First Settlement - Amount Confirmation (Day 1)
The system processes the first settlement cycle:
At 00:00 UTC+2 on the next trading day, the first Daily Metrics settlement occurs.
The system calculates and updates the specific redemption amount in your record.
Fund calculations: During this process, the system recalculates and updates critical fund metrics, including:
Profit distribution
High Water Mark
Other essential fund indicators
You can now see the exact amount that will be redeemed.
Step 4: Second Settlement - Fund Transfer (Day 2)
The final settlement completes the redemption:
At 00:00 UTC+2 on the second trading day after approval, the second Daily Metrics settlement occurs.
The system automatically transfers your redeemed funds to your designated Trading Account or Investment Wallet.
Your funds are now available for use.- Funds are returned automatically to the source account or wallet used for the original investment, whether it is a Trading Account or an Investment Wallet.
Timeline Example
Let's walk through a practical example:
January 6, 2026 - Redemption request approved
Redemption record is created
Visible in My Actions, but no specific amount shown
January 7, 2026 at 00:00 UTC+2 - First settlement
System calculates the specific redemption amount
You can now see the exact amount in your redemption record
January 8, 2026 at 00:00 UTC+2 - Second settlement
Funds are transferred to your designated Trading Account or Investment Wallet
Redemption process is complete
Common Question from Investors
Many fund investors ask: "I've already requested redemption, and I can see that the Funds Manager approved my request immediately. However, my funds haven't been settled yet and haven't returned to my Investment Wallet/Trading Account. Is there a problem with your Funds Management system?"
The answer: There is no system issue. Investors often overlook important steps in the process. After approval, the system needs two settlement cycles to complete the redemption:
First settlement (next trading day at 00:00 UTC+2): Confirms the exact redemption amount
Second settlement (following trading day at 00:00 UTC+2): Transfers funds to your account- Funds are automatically returned to the account or wallet from which the investment was made, and users cannot select an alternative destination.
Key Takeaways
Redemption is a multi-step process: approval, amount confirmation, and fund transfer.
Approval can take up to 48 hours (or be automatic).
First settlement occurs at 00:00 UTC+2 on the next trading day after approval to confirm the amount.
Second settlement occurs at 00:00 UTC+2 on the following trading day to transfer funds.
The complete process typically takes 2 trading days after approval.- Redeemed funds are automatically returned to the original source account, ensuring consistency and security.
Understanding this timeline helps set proper expectations for when you'll receive your redeemed funds.