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Bond Token Redemption

Redemption is the final stage of the Bond Token lifecycle, where token holders receive principal repayment (at maturity), sale proceeds (when exiting early), or call proceeds (when the issuer exercises a bond call). This stage completes the full investment journey from issuance through coupon payments to settlement.

Overview​

Standard path (most holders): At maturity, the issuer repays principal, Bondi registers the net amount onchain, and Bond Token holders redeem directly through the Distribution contract on the Bondi frontend.


Other paths (alternatives):

  • Issuer bond call: The issuer exercises the call provision, redeeming part or all of the outstanding Bond Tokens at the contractual call price (see Issuer Bond Calls below).

  • Early redemption (optional, before maturity): A holder deposits Bond Tokens into the Redemption Vault to seek an off-chain broker sale. Requests pool until the combined position meets the minimum institutional lot size, at which point the batch locks for broker execution. Coupons earned during the pending period are paid at settlement or returned on cancellation alongside the Bond Tokens. An early redemption fee applies only when a sale completes; holders may cancel before the batch locks for a full return; if the bond matures first, the vault settles through Distribution instead (see Redemption Vault outcomes).

Bond Call vs. Early Redemption​

An issuer bond call is initiated by the bond issuer and applied pro-rata to all holders at the call ratio. Early redemption is initiated by an individual holder through the Redemption Vault. The two mechanisms are independent.