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Copy file name to clipboardExpand all lines: docs/fassets/04-redemption.mdx
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@@ -57,14 +57,16 @@ This is the summary of the redemption process:
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The standard `redeem` method requires whole lots.
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The `redeemAmount` method allows redeeming **any amount** of FAssets, which is useful for redeeming yields or partial amounts that don not align with lot boundaries.
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No redemption can be smaller than `minimumRedeemAmountUBA` to prevent uneconomical micro-redemptions.
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No redemption through `redeemAmount` or `redeemWithTag` can be smaller than `minimumRedeemAmountUBA` to prevent uneconomical micro-redemptions.
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If the requested amount requires too many redemption tickets, only a partial redemption is performed and the remaining amount is returned in a `RedemptionAmountIncomplete` event.
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## Redeem with Tag
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The `redeemWithTag` method allows the redeemer to request an **XRP destination tag** on the redemption payment.
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This is useful when redeeming directly to an exchange address that requires a destination tag.
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Like `redeemAmount`, it also supports redeeming any amount, not just whole lots.
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The destination tag must fit in a 32-bit integer.
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This is an XRP-only feature, gated by the `redeemWithTagSupported` flag.
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Confirming a redemption with a tag requires the `confirmXRPRedemptionPayment` method, which uses a dedicated FDC proof type that supports destination tags.
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If the agent fails to pay, the redeemer calls `xrpRedemptionPaymentDefault` to trigger the default process.
@@ -134,6 +136,12 @@ During step 4 above, if any agent does not pay on the underlying chain, the rede
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This remainder is derived from the [system-wide collateral ratio settings](/fassets/collateral#system-wide-thresholds) specified by governance.
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5. The underlying assets backing the redeemed FAssets are marked as free and can be withdrawn by the agent later.
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## Redemption Time Extension
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When many redemption requests target the same agent in rapid succession, the system automatically extends the agent's payment deadline.
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Each new redemption request adds time to the deadline, which then gradually decays back to the baseline as the volume of requests decreases.
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This mechanism prevents agents from being overwhelmed by a burst of redemptions and failing to pay in time through no fault of their own.
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