Redeeming Funds & Retiring

You can redeem your $FLIP, subject to certain conditions. In order to do so, the funds may neither be bonded, nor tied up in auction bidding.

For a detailed account of the process and its restrictions see Redeeming ERC-20 $FLIP through the Gateway.

Retiring from Auctions

First of all, you need to end your participation in auctions. To do so, use the Chainflip CLI:

sudo chainflip-cli --config-root /etc/chainflip validator stop-bidding

Your node will cease to participate in auctions. When your node has left the validator set, it will still be a Keyholder for another epoch. You then have to wait another epoch until your $FLIP can be redeemed, so that your node is no longer a Keyholder. Once your node is no longer a Keyholder you can redeem all your $FLIP by following the next steps.

Redemption Process in Auctions App

The redemption process is initiated via the Chainflip Auctions App (opens in a new tab) > My Nodes alongside the Chainflip CLI. You will need the address of the Ethereum account to which you want your $FLIP to be sent.

In the Auctions App, select "Redeem". This will guide you through the process.

You have two options. By default, the command will redeem the maximum available funds from your account, taking into account the bond.

Example:

Imagine your account balance is 1000 $FLIP and the bond is 800 $FLIP.

You can redeem 200 $FLIP minus the tax, to the Ethereum account 0xcf..cf:

195 $FLIP net.

sudo chainflip-cli redeem 0xcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcf

Alternatively, you can specify an exact amount you wish to redeem, say 50 $FLIP:

sudo chainflip-cli redeem --exact 50 0xcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcfcf

This process will generate a Redemption Certificate that will be sent to the Ethereum network.

Once you have completed the request, continue in the Auctions App, where the redemption should display.

Redemption Tax

The network requires a Redemption Tax of 5 $FLIP per redemption. This is to reduce redemption request spam. These requests are expensive for the network to process, and the cost for this is now carried by the requester, via the tax.

Waiting Period (48h)

A waiting period of 48 hours applies before a certificate can be used to redeem. This delay is a security measure to limit the risk in Chainflip's Vaults.

Execution window (24h)

There is a window of 24h to execute the redemption (these 24h starts as soon as the waiting period ends).

The redemption certificate has an expiration time of 24 hours once the waiting period is over. If the redemption certificate expires, you will need to refund the $FLIP amount back to your State Chain account balance and start the process over. To do so, you only need to click on 'Refund FLIP to your balance'.

Deregistration and Account Deletion

Accounts are automatically deleted once all funds have been redeemed.

Before making this final redemption, your account must be deregistered:

sudo chainflip-cli validator deregister-account

Deregistration is not possible until your account has stopped bidding and is no longer a key holder for an active Epoch (usually this implies that at least one Epoch has passed since your account was last in the authority set).