> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aarc.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# How It Works

> Subscription and redemption flows for iBTCY

BTCY provides on-chain access to institutional BTC yield through a structured process designed for compliance and liquidity.

## Subscription Flow

<img src="https://mintcdn.com/aarc-a7fdfaac/tKSYVKaDnkvx29vB/images/subscription-flow.svg?fit=max&auto=format&n=tKSYVKaDnkvx29vB&q=85&s=065ae63791256a9f1917ebe13ed7b6c6" alt="Subscription Flow" width="800" height="200" data-path="images/subscription-flow.svg" />

1. **KYC Verification**: Complete verification via Sumsub (1-5 business days)
2. **Wallet Whitelisting**: Your Ethereum address is whitelisted
3. **BTC Deposit**: Transfer BTC to custody (native BTC recommended, 0% fee)
4. **6h Cooling-Off**: Cancel for full refund during this window
5. **Instant Mint**: iBTCY minted for buffer portion (up to 32% of NAV)
6. **Queue Processing**: Excess amounts deployed at monthly SSBAF window
7. **Wrap to BTCY**: Optional 1:1 conversion for DeFi access

<Card title="Full Subscription Details" icon="arrow-right-to-bracket" href="/investors/subscription">
  Accepted assets, pricing, queue mechanics, and more
</Card>

## Redemption Paths

<img src="https://mintcdn.com/aarc-a7fdfaac/tKSYVKaDnkvx29vB/images/redemption-flow.svg?fit=max&auto=format&n=tKSYVKaDnkvx29vB&q=85&s=12f0ccc49415460adaa38bd8fcd3ca03" alt="Redemption Flow" width="800" height="340" data-path="images/redemption-flow.svg" />

| Path          | Timeline   | Fee      | Best For                           |
| ------------- | ---------- | -------- | ---------------------------------- |
| **Instant**   | T+0 to T+2 | 10 bps   | Quick exit (up to buffer capacity) |
| **Primary**   | 30-45 days | None     | Larger amounts, no fee             |
| **Secondary** | Instant    | DEX fees | Market exit via BTCY (planned)     |

<Warning>
  Instant-minted iBTCY has a 7-day cool-down before instant redemption. All redemptions settle in native BTC. Minimum: 100,000 USD equivalent in BTC.
</Warning>

<Card title="Full Redemption Details" icon="arrow-right-from-bracket" href="/investors/redemption">
  Limits, pricing, settlement, and worst-case timelines
</Card>

## Worst-Case Exit

| Scenario                                                        | Timeline                             |
| --------------------------------------------------------------- | ------------------------------------ |
| Normal (buffer available)                                       | T+0 to T+2                           |
| Buffer depleted                                                 | 30-45 days                           |
| SSBAF gate triggered (80%)                                      | 60-90 days typical when gate applies |
| Extreme circumstances                                           | 90+ days; may exceed 180 days        |
| Suspension (market disruption, force majeure, regulatory order) | Indefinite; no maximum               |

Full settlement may exceed 90 days and may be suspended indefinitely under the Subscription Agreement.

<CardGroup cols={2}>
  <Card title="Liquidity Framework" icon="water" href="/investors/liquidity">
    Buffer mechanics and gating rules
  </Card>

  <Card title="Fees" icon="receipt" href="/product/fees">
    Complete fee breakdown
  </Card>
</CardGroup>

***

<Note>
  Available only to eligible professional/qualified investors on an invite-only basis, subject to onboarding and compliance approval. For informational purposes only and not investment advice. Not an offer to the public or a solicitation where unlawful. No retail distribution. Not available to US Persons.

  [Disclaimers](/legal/disclaimers) · [Platform and issuer](/legal/platform-legal)
</Note>