Sequential redeeming

How to sequentially redeem a leveraged token

If the value of your leveraged tokens exceeds the maximum withdrawable margin on Synthetix, you may need to redeem them sequentially. This means you cannot redeem all tokens in a single transaction and must complete the redemption over multiple transactions.

You can still redeem all your leveraged tokens. It only requires one or more additional transactions.

The following guide walks you through this process.

In this example, the user holds 23,091 SOL4S, representing approximately 88% of all circulating SOL4S tokens. Consequently, redeeming the entire amount in a single transaction would exceed the maximum withdrawable margin of the underlying Synthetix perpetual futures.

Fig. 1: Portolio view before redemption

As shown in Fig. 2, the pop-up alert indicates that a sequential redemption is required. Note that the amount of SOL4S redeemed in this transaction is less than the input amount.

The Expected sUSD Received corresponds to the 21,249.74 SOL4S, the maximum amount that can be redeemed in a single transaction, NOT the input amount of 23,091 SOL4S.

Fig. 2: Redemption interface of first transaction

After redeeming the maximum amount of 21,249 SOL4S in the first transaction, you will be redirected to the portfolio view, where you can redeem the remaining leveraged tokens.

Fig. 3: Portfolio view after first redemption

To redeem the remaining SOL4S, return to the redemption interface. With no pop-up alert present, you can now redeem the full amount.

Fig. 4: Redemption interface of second transaction

After redeeming the full amount of tokens, you will be redirected to the portfolio view.

In some cases, redeeming a large proportion of tokens may require more than two transactions.

Fig. 5: Portfolio view after second transaction