Notional V2
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# nToken Redemption

We can best demonstrate the redemption process with an example. Assume that the below nToken account has 100 nTokens outstanding and a user wishes to redeem 10 nTokens.

#### nToken account:

cTokens: +100
 Maturity Liquidity Tokens fCash June 1 2021 +200 -200 September 1 2021 +300 -300 December 1 2021 +500 -500
Note: the below example uses arbitrary values for the ratios of liquidity token cash claims to fCash claims in step 2, and arbitrary exchange rates between fCash and cTokens in step 4.

### Step 1

Upon redemption, Notional calculates the redemption share - the share of the total supply of nTokens that the user is redeeming.
$redemption \text{ } share = .1$

### Step 2

Notional converts the nToken account's liquidity tokens to cTokens and fCash in memory.

#### nToken net fCash and cToken holdings:

cTokens: +1100
 Maturity fCash June 1 2021 +100 September 1 2021 +150 December 1 2021 +250

### Step 3

Notional applies the redemption share to the nToken's cToken balance and each net fCash balance.
User share of net nToken holdings:
cTokens: +110
 Maturity fCash June 1 2021 +10 September 1 2021 +15 December 1 2021 +25

### Step 4

Notional trades the user's share of each fCash balance for cTokens via the corresponding liquidity pools.
Converted fCash holdings:
cTokens: +110
 Maturity cTokens June 1 2021 +9 September 1 2021 +13 December 1 2021 +23

### Step 5

Notional returns a net cToken amount to the user.
$net \text{ }cTokens \text { } to \text{ } user= 110 + 9 + 13 + 23 \\~\\ net \text{ }cTokens \text { } to \text{ } user = 155$