Can I exit before my instrument's maturity date?

Can I exit before my instrument's maturity date?

It depends on the structure, and the honest answer is that exit terms are tied to how liquid the underlying assets actually are. A product backed by private credit deals can't offer the same instant exit as one backed by liquid crypto, because the capital is deployed into loans that return cash on their own schedules.

Most institutional RWA structures use one of a few exit mechanisms. Some offer periodic redemption windows, defined points (monthly, quarterly) at which you can submit a redemption request, fulfilled after a notice period once the issuer has the cash and an updated valuation. Some hold a reserve or liquidity buffer specifically to honor a limited volume of early redemptions between windows. And some allow positions to be transferred or sold to another eligible party on a secondary basis, so you exit by finding a buyer rather than by redeeming from the issuer directly.

The common thread is that early exit is generally possible but not instant, and it's structured around the reality of the underlying assets rather than around a promise the assets can't support. This uses an asynchronous, request-based flow (see ERC-7540) rather than the instant settlement a liquid-asset vault can offer, which is a deliberate design choice: a structure that promised instant exit while holding illiquid credit would be making a promise it could only keep as long as new deposits kept arriving.

Before committing capital, the specific terms to check are the redemption window frequency, the notice period, any early-exit fees or gates, and whether a secondary transfer option exists. Those terms, not a general "yes or no," are what actually determine your liquidity.

Related: Async deposits and ERC-7540 and Cashflow timing and reward sustainability.