Withdraw Flow (7-Day Delay)

This page documents the AIRTrading withdrawal sequence for users exiting a shared vault allocation.

Overview

AIRTrading uses a single-vault model. Each user owns a share of the vault based on the current value of their allocation relative to total vault equity.

When a user requests withdrawal, the protocol settles that user by closing the same percentage of all open positions, recording the realized result, and releasing funds after a fixed 7-day delay.

Core withdrawal logic

When a user submits a withdrawal request:

1. The protocol locks the user share percentage at request time (exitPctNow)

2. The vault reduces all open positions pro-rata using the same percentage

3. The realized proceeds are recorded as the user's exit allocation

4. An ExitTicket is created with a fixed unlock time (now + 7 days)

5. The user is excluded immediately from subsequent vault PnL and epoch distributions (including the current epoch)

During the 7-day delay, the user is no longer exposed to vault PnL because the user allocation has already been reduced out of the vault and recorded in the exit flow.

Step-by-step sequence

1) Determine the user exit share

The protocol computes the user's current vault weight at the moment of the request.

• exitPctNow = userWeightNow

Example:

• vaultTotalEquityNow = 1,000

• userShareValueNow = 300

• exitPctNow = 30%

2) Reduce all open positions pro-rata

If the vault holds positions A, B, and C, and exitPctNow = 30%, the protocol reduces:

• 30% of position A

• 30% of position B

• 30% of position C

This preserves fairness across users because the exiting user receives the realized result of the same proportional exposure they held in the vault.

3) Record the realized exit allocation

The stable value recovered from the pro-rata reductions becomes the user's exit allocation.

Recommended terminology:

• realizedValueForUser: stable value realized from the pro-rata close

• principalBasisForUser: accounting basis used to measure user PnL

• realizedPnlForUser = realizedValueForUser - principalBasisForUser

This naming keeps a clear distinction between:

• vault share (percentage)

• principal basis (accounting reference)

• realized value (actual proceeds from the withdrawal unwind)

4) Create ExitTicket (fixed delay)

An ExitTicket is created with the data required for settlement and claim.

Minimum fields:

• exitValueStable

• pnlUser (positive or negative)

• unlockTime = now + 7 days

5) Apply immediate exclusion (anti double-counting)

From the moment the withdrawal request is accepted:

• userExcluded = true

• the user is not exposed to further vault PnL

• the user does not participate in epoch reward calculations

• current epoch inclusion is removed immediately (no carryover to next epoch)

This prevents overlap between:

• withdrawal settlement, and

• epoch-based profit distribution

Recommended auditable event structure

WithdrawRequested(user)

Suggested fields:

• vault_equity_now

• user_weight_now

• close_ratio

• positions_closed_summary

• realized_value_stable

• principal_basis_user

• realized_pnl

• unlock_time

User-Facing Communication

Recommended UI messaging:

• "Withdrawal request accepted. We are reducing your current share across all vault positions."

• "Your vault share has been removed from active exposure."

• "Your exit value and realized PnL have been recorded."

• "Funds will be claimable in 7 days."

Positive and negative settlement outcomes

If realized PnL is positive

If pnlUser > 0:

• the profit component may be converted into AIR3 (implementation-specific rules apply)

• profit distribution follows the protocol split logic (including fee treatment where applicable)

• the capital component remains denominated in stable

• the user receives the user allocation of the profit split in AIR3

If realized PnL is negative

If pnlUser < 0:

• the loss is absorbed by the user's allocation

• the stable payout is reduced accordingly

• no AIR3 reward is distributed from a loss

Why this model is used

This withdrawal model improves accounting clarity and fairness by separating:

• withdrawal settlement (user-specific realized result at request time)

• epoch distributions (active-user profit sharing only)

It also gives the user a deterministic path: request -> pro-rata reduction -> ExitTicket -> delayed claim.