How withdrawals work

How withdrawals are filled#

Withdrawal Requests are processed at each weekly cycle close using the funds available in your Lending Option at that time. Those funds come from End Borrower repayments that have not been redrawn, and from new lending into the same Lending Option. Your request may be filled in full, in part, or not at all, and any remaining amount stays in the queue for following cycles. Completed withdrawals are paid to your Digital Wallet in the loan's stablecoin.

A request that remains queued for more than five Transaction Cycles is prioritised ahead of all other requests until it is filled.

Interest continues to accrue on the amount still lent while a request is queued. A queued request does not take your loan out of the strategy: any loss that reaches your Lending Option while your request is queued affects your loan in the normal way (Losses).

How long it takes#

Not on demand. Sometimes requests are filled within a few weeks, sometimes earlier and sometimes longer, but there is no schedule. The best available guide is the duration of the strategy's underlying loans, because it is those loans repaying that produces the funds withdrawals are paid from. Treat it as a guide, not a timetable: your capital is not tied to any one loan, and withdrawals are not paid in step with any one loan's repayment. The Loan Tapes section shows the typical loan and the schedule on which principal is due back. If you may need money at short notice, lending it on Kasu is the wrong place for it.

Cancelling a Withdrawal Request#

A Queued Withdrawal Request can be cancelled from My Loans until its cycle closes.

Fixed Rate Loans#

No Withdrawal Request can be made during a fixed rate loan's term. To have your capital returned at the loan's end date, you must request repayment at least 28 days before expiry, from My Loans. If you do not, the loan continues after expiry at the prevailing variable rate, and the normal Withdrawal Request process then applies.

Forced Withdrawal#

Occasionally a withdrawal is initiated by Kasu or the Credit Originator rather than by you, as provided for in your Loan Agreement. This can happen when a Lending Option's funding is no longer required, or where platform or compliance requirements call for it. Your loan balance, including capitalised interest, is returned to your Digital Wallet. You do not need to do anything. It appears in your history as a Completed request marked Forced Withdrawal.