> For the complete documentation index, see [llms.txt](https://docs.wandfi.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandfi.io/products/collateral-vault/vault/v-vault/withdraw-for-redemption.md).

# Withdraw for redemption

The protocol's asset redemption mechanism also consists of two modes: the stability phase and the adjustment phase.

<figure><img src="/files/LDNUmnACNbJX22BgT1hg" alt="" width="360"><figcaption><p>Figure: Redemption Process</p></figcaption></figure>

***

## Stability Mode

During the stability phase, users must hold a fixed ratio of USB and ETHx to redeem the corresponding ETH from the Vault. For example, if a user wishes to redeem a certain amount of ETHx, they need to pair it with the corresponding quantity of USB, and vice versa. The calculation formula is as follows:

$$\Delta USB = \frac{\Delta ETHx \times M\_{USB-ETH}}{M\_{ETHx}}$$

The amount of ETH redeemed with the paired ( \Delta ETHx ) and ( \Delta USB ) is:

$$\Delta ETH = \frac{\Delta ETHx \times M\_{ETH}}{M\_{ETHx}}$$

{% hint style="info" %}
**Example:**

Based on the data from the previous example, where there are a total of 7 ETH in the Vault, the protocol has generated 9333.8 USB, and 2.3333 ETHx, when a user wishes to redeem 1 ETHx, they need to accompany it with USB for redemption. The required amount of USB to accompany the redemption is:

$$\Delta USB = \frac{\Delta ETHx \times M\_{USB-ETH}}{M\_{ETHx}} = \frac{1 \times 9333.8}{2.3333} = 4000$$

Then, the amount of ETH to redeem when accompanying 1 ETHx with 4000 USB for redemption (assuming no transaction fees) is:

$$\Delta ETH = \frac{\Delta ETHx \times M\_{ETH}}{M\_{ETHx}} = \frac{1 \times 7}{2.3333} \times 1 = 3$$
{% endhint %}

***

## Adjustment Mode

When the protocol enters the adjustment phase, the user redemption rules change. If AAR rises above AARU, users can redeem ETHx alone. The redemption quantity calculation formula is as follows:

$$\Delta ETH = \frac{\Delta ETHx \times (M\_{ETH} \times P\_{eth} - M\_{USB-ETH})}{M\_{ETHx} \times P\_{eth}}$$

If AAR falls below AARS, users can redeem USB alone, and the quantity calculation formula is as follows:

$$\Delta ETH = \frac{\Delta USB}{P\_{eth}}$$

In the extreme scenario where AAR falls below 100%, the USB redemption mechanism is as follows:

$$\Delta ETH = \frac{\Delta USB \times M\_{ETH}}{M\_{USB-ETH}} \quad \text{if AAR} < 100%$$

Excluding the two situations mentioned above, users still need to pair two assets together for redemption.

{% hint style="warning" %}
The redemption fee is 0.5%
{% endhint %}