# Redemption and Rebasement

An investor can redeem their UST NFT for USDC/USDT from the UST NFT Assent Pool by initiating a withdrawal on the Account interface. During the redemption process, the UST NFT previously held by the investor will be burnt. The final amount of USDC/USDT the investor will receive will be the rebased face value of UST NFT, net of transaction fees.

<figure><img src="https://3926033183-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FH5SoUDNVtc8KdX9r9IX4%2Fuploads%2Fp1TbqvVgb6AB8XuI4FUu%2Fimage.png?alt=media&#x26;token=97430a0d-1f92-4303-a675-14ecb69f2855" alt=""><figcaption></figcaption></figure>

***Y(i) represents the initial face value of UST NFT hold by investor(i)***

***C represents USDC/USDT tokens in UST NFT Assent Pool***

***T represents USD***

***B represents the market value of US Treasury-Bills***

***R represents the rebased face value of UST NFT***

***M represents USDC/USDT tokens to receive***

***S represents transaction fees***

#### Note on on-chain liquidity

The ARKS US Treasury will maintain a maximum of 5% USDC/USDT reserves on-chain by rebalancing its holdings daily. Any remaining USDC/USDT will be converted to USD and used to purchase US Treasury-Bills via the established brokerage account, which will then be held in custody by regulated custodians. As a result, there may be instances where the available liquidity of USDC/USDT in the UST NFT Asset Pool is insufficient to immediately meet investor demands for redemption. In such cases, investors who initiate a redemption request will be placed into a withdrawal queue.

**Procedure:**

1. The requested redemption amounts will be aggregated and fulfilled through the sale of US Treasury-Bills held in the custodian account. This process may take up to two business days.
2. The sales proceeds in USD from the US Treasury-Bill sale will be converted back into USDC/USDT and transferred to the UST NFT Asset Pool to satisfy any outstanding redemption requests. This process may require up to three business days.