When a Junior token (e.g., jrUSDe, jrPRIME) is redeemed, the user receives the underlying asset and/or associated stablecoins based on the Junior token's exchange rate with the reference asset, minus any applicable redemption fees.
At the current stage of protocol implementation:
Junior tokens can be redeemed for the underlying asset and associated stablecoins through the Strata UI.
Redemption fees are variable, depending on the specific market and the current Senior token coverage level. The applicable fee is displayed on the UI prior to confirmation.
Redemption of the underlying asset is subject to a cooldown period that varies by market and coverage level — in some markets this may be instant, in others it can range up to several weeks. The applicable cooldown is displayed on the UI prior to confirmation. During this period, holders remain exposed to the Junior token's performance. Once the cooldown ends, the asset can be claimed in the Portfolio section.
Junior token redemption is temporarily paused when the corresponding Senior token's coverage ratio falls below the minimum threshold.
Junior tokens can also be traded for other assets on DEXs.