Redemption & Lock Period

Pallas is designed to offer users flexible access to their capital while protecting strategy performance during periods of high volatility or constrained liquidity.

Redemption Period

Withdrawals from Pallas vaults operate on a variable redemption window that adjusts dynamically based on market conditions. This window typically ranges from:

1 hour to 3 days

The goal is to ensure redemptions can be executed efficiently without forcing trades that would negatively impact performance or reduce net yield.

The redemption period may extend toward the upper bound when:

• Market volatility spikes

• Liquidity across exchanges is thin

• Positions require gradual unwinding to avoid slippage

• Spreads or funding conditions are temporarily unfavorable

By allowing the system to unwind positions optimally, users benefit from higher net yield and reduced execution risk.

Lock-Up Period

Pallas vaults do not impose any lock-up period on funding or basis arbitrage strategies. Users can request withdrawals at any time, with no mandatory holding duration and no early-exit penalties.

However, to ensure that returns accurately reflect the behavior of the underlying strategies, we strongly recommend that users maintain their position for a sufficient period before withdrawing. Short time horizons may show yield variability due to:

• Market regime shifts

• Temporary spread compression

• Funding fluctuations

• Execution cycles still compounding

Over longer horizons, particularly over 1 year, returns tend to converge toward a more representative and stable yield profile. Remaining invested for longer periods also allows users to benefit from compounding, which significantly enhances net performance over time.

In summary:

• No lock-up imposed

• Withdraw anytime

• But optimal results are achieved with medium-to-long-term participation