> For the complete documentation index, see [llms.txt](https://docs.noon.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.noon.capital/2.-usdusn-and-usdsusn/liquidity.md).

# Liquidity

A yield-bearing stablecoin is only as good as your ability to **get it back**. <mark style="color:purple;">**Noon**</mark> structures redemption capacity in **tiers**. This absorbs exits in an orderly sequence. It avoids forced position sales. It also shows how much of the reserve is reachable and when.

## <mark style="color:$primary;">The redemption waterfall</mark>

Redemption capacity is tiered by Total Value Locked (TVL), as below.

<table><thead><tr><th width="254.1817626953125">Window</th><th width="272">Available</th></tr></thead><tbody><tr><td><strong>T+0</strong> (same day)</td><td>20% of TVL</td></tr><tr><td><strong>T+3</strong> (within three days)</td><td>60% of TVL</td></tr><tr><td><strong>T+5</strong> (within five days)</td><td>100% of TVL</td></tr></tbody></table>

**Everyday exits** clear from the immediate tier. Larger waves settle within days. A **full-reserve unwind** completes inside a week. The tiers prevent forced position sales at a bad price.

## <mark style="color:$primary;">What makes this possible</mark>

The waterfall comes from **three deliberate reserve layers**:

1. **Liquid base assets.** A meaningful share of reserves sits in T-bills and DeFi lending positions. These convert to dollars **within hours**.
2. **Diversified duration.** The basket mixes redemption profiles. **No single strategy** dictates the protocol's timeline. Short-duration positions cover the waterfall's front. Longer-duration strategies earn in the back.
3. **Proprietary liquidity management system (PLMS).** <mark style="color:purple;">**Noon**</mark>'s PLMS is a series of legal agrements with a vareity of counterparties which allow Noon to ensure that it meets its guarantee to allow 100% of TVL to be redeemed within T+5. Specifically, it allows <mark style="color:purple;">**Noon**</mark> to exit its private credit positions, whch typically take over 3 months to unwind, within 5 days.

> #### If required, <mark style="color:purple;">**Noon**</mark> <mark style="color:$warning;">can provide an attestation from our private credit partner</mark>, confirming their review of <mark style="color:purple;">**Noon**</mark>'s PLMS, and their assessment that it allows all redemptions within T+5.

## <mark style="color:$primary;">What this means for you</mark>

**Selling** <mark style="color:violet;">**$USN**</mark> or <mark style="color:violet;">**$sUSN**</mark> on a DEX is **always available at market**. It remains subject to pool liquidity at that moment.

**Unstaking** <mark style="color:violet;">**$sUSN**</mark> back to <mark style="color:violet;">**$USN**</mark> follows a 7-day cooldown. **Redeeming** through the protocol is the **permissioned path**. This waterfall backs that path; see [**Mint & Redeem**.](/2.-usdusn-and-usdsusn/mint-and-redeem.md)

For how liquidity fits the wider risk picture, see [**Disciplined Risk Management**](/5.-the-security-framework/disciplined-risk-management.md) and [**Risks & Mitigants**.](/1.-noon-the-basics/risks-and-mitigants.md)