# 💧 Liquidity & Redemptions

Vault liquidity determines how quickly users can convert their vault receipt tokens back into underlying stablecoins. RWAlpha provides multiple vault types, each offering different redemption timelines based on the liquidity profile of the real-world assets inside.&#x20;

### **How Redemptions Work**

#### **1. Mint**

You receive a vault token (e.g., **rQCDT**) when you deposit USDC into an RWAlpha vault.

#### **2. Hold**

Your vault token automatically accrues yield as the vault’s underlying assets generate income.

#### **3. Redeem**

When you decide to exit, you can redeem your vault token for its proportional share of the vault’s assets—plus any accumulated yield.

***

## **Redemption Timing & Tracking**

All redemption requests and their statuses are visible directly inside the RWAlpha app.\
Vaults generally fall into **two liquidity categories**:

***

### **1. T+2 / T+3 Liquidity**

* Redemptions are processed instantly and **settled on T+2 / T+3**.
* Supported by highly liquid, publicly traded assets.
* Best for users who want flexible access to funds with minimal waiting time.

***

### **2. Variable Liquidity**

* Redemptions typically take **7–10 days** depending on the underlying assets.
* Deposited assets continue earning yield until the redemption request is fully settled.
* The app clearly shows expected wait times before users confirm their redemption.
