# Liquidity & Redemptions

Vault liquidity refers to how quickly users can redeem their vault tokens for underlying stablecoins. Nest offers multiple vault types, each with different redemption timelines that depend on the underlying assets.

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### **Redemption Mechanics**

Nest vaults generally support two exit paths, depending on available liquidity, vault configuration, and the size of the redemption.

#### **Instant Redemption**

Instant redemption enables the immediate conversion of vault tokens into stablecoins using available on-chain liquidity. This option is subject to sufficient liquid reserves within the vault or its associated liquidity pools. A small liquidity fee—typically between **0.1% and 0.5%**—may apply to reflect the cost of providing immediate liquidity.

#### **Queued (Asynchronous) Redemption**

Queued redemptions are fulfilled through an ordered settlement process as underlying assets are unwound or liquidity becomes available. This pathway does not incur an instant liquidity fee, and deposited **capital continues to accrue yield until settlement occurs.**

Settlement timelines depend on the **vault strategy, the liquidity profile of the underlying assets, and the size of the redemption relative to available reserves**. For most Nest vaults, median-sized redemptions are typically fulfilled within approximately one hour, while the maximum settlement window for most strategies ranges from T+2 to T+5. Larger withdrawals, or redemptions submitted when available liquidity is limited, may require additional time as positions are unwound in an orderly manner.

Certain strategies that hold **l**onger-duration real-world assets may have extended redemption timelines, typically ranging from 30 to 90 days.

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### Liquidity Management

When redemption requests come in, vault operations will sell underlying assets to generate necessary liquidity.  When deposits come in, that liquidity is used to buy more underlying yield bearing assets.  Vaults target keeping a liquidity buffer in the range of 3% - 10% of the vault NAV held in highly liquid assets (stablecoins / tbills)  to facilitate redemptions.  

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### Related Pages

* [Browse the Full Vault List](https://docs.nest.credit/about/available-vaults)
* [See the Assets Classes](https://docs.nest.credit/about/asset-classes)