Redemption
Disclaimer: This article provides general information to help explain Tessera's Terms and Conditions in simpler language. It is for informational purposes only and should not be relied upon as legal, financial, investment, or tax advice. T-Tokens represent loan participation rights, not securities, though regulatory treatment may vary by jurisdiction. This is not a substitute for the official Terms and Conditions at https://terms.tessera.pe, which shall prevail in all respects in case of any discrepancy. These materials are not directed to persons in jurisdictions where such activity would be unlawful. Before using Tessera, you must read and accept the complete Terms and Conditions and consult your own legal, financial, and tax advisors.
Redemption overview
When a Tessera-linked underlying company experiences a Liquidity Event, Tessera enables eligible token holders to redeem their tokens for proceeds derived from that event.
You receive your proportional share of whatever the underlying assets were sold for.
Redemption bridges real-world liquidity outcomes with on-chain settlement, subject to clearly defined terms and time windows.
A company that has completed an IPO or undergone another qualifying Liquidity Event no longer retains private equity status with respect to that event.
However, Tessera tokens may continue to trade on secondary markets unless and until redemption occurs, subject to the Terms and Conditions.
What Triggers Redemption
Redemption is only available during a formally announced Redemption Period, which begins after all of the following conditions are met:
A Liquidity Event has occurred, defined as either:
An IPO, where the underlying company goes public on a recognized stock exchange.
A Change of Control, where more than 50% of voting control is acquired, or the company is sold or merged.
Additional requirements:
Any applicable lock-up period has expired (after an IPO, insiders and large shareholders typically cannot sell for a specified period).
Tessera has received the proceeds from that Liquidity Event.
Tessera has announced the official Redemption Start Date.
No redemption is possible before these conditions are satisfied.
Redemption Mechanics
Redemption connects off-chain liquidity events to on-chain payouts through the following process:
Following a Liquidity Event and expiration of any lock-up period, the relevant Segregated Portfolio sells/liquidates all or part of its equity position in the underlying company, in accordance with the applicable structure.
Proceeds from the exit flow back to Tessera Issuer Inc. and are converted into stablecoins. The specific stablecoin is determined by Tessera at its discretion and may not necessarily be the same stablecoin you originally used.
The stablecoin proceeds are allocated to token holders pro rata, based on their share of the total token supply for the relevant Segregated Portfolio.
For example, holding 1% of the token supply entitles you to 1% of the distributable proceeds from that portfolio.
No fixed return is guaranteed—if the company exits at a higher valuation, your proceeds are higher; if it exits lower, your proceeds are lower.
Token holders may redeem by exchanging their eligible Tessera tokens during the Redemption Period in exchange for their allocated proceeds.
Depending on the specific structure, tokens may be fully extinguished upon redemption or may continue to represent residual rights if the Segregated Portfolio retains other positions.
Redemption Period and Deadlines
The Redemption Period lasts for a fixed number of days, as specified in the applicable terms, starting from the Redemption Start Date.
⚠️ Critical Notice
If you do not redeem your tokens within the Redemption Period:
Any unclaimed redemption amounts cease to be claimable.
Tessera reserves the right to forfeit unclaimed proceeds.
You permanently lose your funds.
Token holders must actively participate in the redemption process during the designated window—redemption is NOT automatic.
Trading Before and After Redemption
Tessera's Terms and Conditions do not prohibit secondary market trading of tokens prior to redemption.
You may sell your tokens on DEXs before redemption if you prefer immediate liquidity at market prices.
A 0.2% transfer fee (with maximum cap) applies when tokens are transferred or sold.
Trading availability does not guarantee liquidity—liquidity depends on willing buyers and sellers.
FAQs
#1: Can I redeem my tokens immediately after an IPO?
No. Redemption only becomes available after:
(1) a Liquidity Event has occurred,
(2) any applicable lock-up period has expired,
(3) Tessera has received the proceeds, and
(4) the Redemption Start Date has been formally announced.
#2: How long do I have to redeem my tokens?
Only for the duration of the Redemption Period, which is defined in the relevant terms.
Missing this window means losing your funds.
#3: What happens if the company never goes public?
Redemption will not occur unless a qualifying Liquidity Event takes place. Companies can remain private indefinitely. Tokens may continue to trade on secondary markets, subject to availability and market demand.
#4: Can I sell my tokens instead of redeeming them?
Yes. You can always sell tokens on DEXs instead of waiting for redemption. This provides immediate liquidity at market prices, provided you can find a buyer.
#5: What stablecoin will I receive at redemption?
You will receive stablecoins (such as USDC or USDT), but the specific stablecoin is determined by Tessera at its discretion and may not necessarily be the same stablecoin you originally used.
#6: Are there tax implications during redemption?
Redemption likely constitutes a taxable event depending on your jurisdiction, residency, and tax status. Proceeds may be subject to withholding taxes where applicable.
You are solely responsible for determining and complying with your tax obligations. Tessera does not provide tax advice. Please consult your local qualified tax professional for guidance.
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