> For the complete documentation index, see [llms.txt](https://docs.bima.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bima.money/the-collar-loan/repayment-and-redemption.md).

# Repayment and Redemption

<figure><img src="https://1150339483-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FuV0XpSBB66aR52DO5D6k%2Fuploads%2FCgppUyjAYWB7WO8da2le%2Frepayment-redemption.svg?alt=media&amp;token=12ff18f9-3a85-445b-ba06-a31122410a37" alt=""><figcaption></figcaption></figure>

## Phase 5  Repayment

At maturity  twelve months from your vault's start date  you repay the USDC you claimed.

* Repayment is made to the vault and recorded on-chain.
* The amount is exactly what you claimed. No interest has accrued.
* If you never claimed, there is nothing to repay.

{% hint style="info" %}
**Have the USDC ready before maturity.** Your obligation is known from the day you claim, twelve months in advance. Sourcing it at the last moment, in a market that may be stressed, is an avoidable risk.
{% endhint %}

## Phase 6  Collar settlement and redemption

Repaying does not release your collateral immediately. Two things happen first.

**The collar settles** against the strike levels fixed at the start of your term. Where Bitcoin finished determines your outcome  see [What Is a Collar?](file:///8003494/what-is-a-collar.md).

**The redemption window runs** for **7–15 days**, covering reconciliation, coordination with the counterparty and redemption approvals.

When the window closes, you redeem your collateral.

### The timeline

| Point              | What happens                                        |
| ------------------ | --------------------------------------------------- |
| **Month 12**       | Term ends and the collar expires                    |
| **You repay**      | USDC returned to the vault, recorded on-chain       |
| **Collar settles** | Position resolves against your put and call strikes |
| **Window closes**  | After 7–15 days                                     |
| **You redeem**     | Collateral released to your wallet                  |

{% hint style="warning" %}
Plan for the delay. Collateral is released after settlement and the redemption window, not on the day you repay. If you are depending on having the Bitcoin back by a specific date, count from the end of the window.
{% endhint %}

## How settlement is calculated

{% hint style="info" %}
**Coming soon.** The precise settlement mechanics what is returned in each zone, and how the collar outcome is netted against your USDC repayment  will be published here before the first vault reaches maturity.
{% endhint %}

## If you do not repay

Collateral is released against repayment. If you do not repay, you do not redeem.

{% hint style="info" %}
**Coming soon.** Full non-repayment terms grace period, settlement of outstanding amounts against collateral, and treatment of partial repayment will be published here before the first vault matures.
{% endhint %}

## Rolling into the next vault

There is no automatic rollover. Each vault ends completely: repay, settle, redeem, position closed.

To continue, deposit into a currently open vault. That is a new position with a new term, new maturity and **new strike levels** priced on that date. See [Vault Schedule](file:///introduction/vault-schedule.md).