Sell Principal Tokens
This guide will assist you in navigating the 'Sell Principal Tokens' module.
Open Fixed Rates (PT), choose the market and select Sell. You can also use a live PT position's Buy/Sell action in Portfolio.
Enter the PT amount and select an available output asset. Review Output, Slippage Tolerance, Min. received, fees and price impact. Output and minimum received use the selected asset's symbol and decimals; it can be the underlying, an IBT or another supported route asset.
Approve PT if required, then confirm Sell PT in your wallet. A successful transaction cannot return less than its submitted minimum. If the quote expires or market conditions change beyond that tolerance, obtain a fresh quote.
Frequently Asked Questions
- What is the benefit of selling Principal Tokens before maturity?
If you don't want to wait any longer for your Principal Tokens to reach maturity, you can sell them back to the pool for immediate underlying tokens. The number of Underlying tokens you will receive depends on factors such as time left to maturity and available liquidity.
- Why am I not receiving an equal amount of underlying for my Principal Tokens?
Before maturity, PT is sold at the pool's market price, which is normally below its redemption value, so a sale returns less than the amount redeemable at maturity. To receive the full redemption amount, hold the PT to maturity and redeem it from Portfolio. Even then, an underlying loss can reduce the redemption rate, and IBT or wrapper outputs use their own conversions.
- Can I sell a portion of my Principal Tokens, or must I sell all at once?
You can sell a portion before maturity when a supported route has sufficient liquidity.
- Why does it say, 'You will receive at least'?
The summary provides the estimated outcome based on the current liquidity and factors in all the fees. If the pool's liquidity shrinks after initiating the transaction (e.g., someone sells a large PT position right before you), the transaction will not settle for less than what is displayed in the Min. received.
- What happens after selling my PTs?
After selling your Principal Tokens, you receive the selected output token in your wallet.