Frequently asked questions

Clear answers about Paravel, vault participation, fees, withdrawals, and the risks of PayFi lending.

Compulsory redemption3 questions

Can you force me out?

Yes, on two different bases, at two different prices.

For cause— if you're a Prohibited Person or hold in breach of the eligibility rules, fail verification, if your participation would cause the Issuer or a payment institution to breach the law or suffer material regulatory, tax or reputational detriment, if you acquired your interest in breach of transfer restrictions, or if you engaged in market or oracle manipulation. Redeemed at NAV less costs we reasonably incur.
At our discretion— we may compulsorily redeem the whole of any Participant's Vault Interest at our discretion and without being required to give a reason. In that case you get written notice, redemption happens at the first dealing day at least three Business Days later, and you are paid the full NAV including all return accrued to that date, with no deduction of any kind — no costs, no redemption fee, nothing.

Isn’t that unusual?

No. A discretionary compulsory redemption right is standard in documentation of this nature. What we have done is separate it from the fault-based grounds so that the discretionary route pays you out in full — you are not penalised for a decision that isn't about anything you did.

Could you use it to remove someone who complains?

Not lawfully. A discretion of this kind has to be exercised honestly and for a proper purpose, and “no reason required” means we need not state one — not that any reason is permissible.