> For the complete documentation index, see [llms.txt](https://docs.elara.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.elara.fi/architecture/liquidity-framework.md).

# Liquidity Framework

Elara does not promise unlimited instant liquidity. That is not realistic when capital is actively deployed, and a protocol that promises it is either holding idle assets or is not being straight with you. Instead we run a managed framework that balances access against efficiency.

The current operational target is to maintain **roughly 10% of total system assets** in a stablecoin buffer, available for instant redemption. If your ELUSD redemption fits within that buffer, you get your stablecoins back immediately.

Larger requests that exceed the buffer are typically processed within **\~24 hours**. This window gives execution partners time to unwind positions without slippage, rather than forcing liquidations that would hurt everyone in the pool. Both the buffer size and processing window are operational targets, not contract-enforced parameters; they may adjust as the system scales.

When the buffer is exhausted, your redemption is queued on-chain against a redemption ID and recorded in the Vault, with a `RedeemQueued` event. It is settled once treasury liquidity is available, by an authorised role calling settlement. Your claim is recorded on-chain from the moment you submit it; you are not asked to resubmit.

Note the asymmetry: redeeming is permissionless and open to any holder, while settling a queued redemption is a restricted function.

We would voluntarily halt redemptions only in response to a smart-contract exploit or credible security incident where continued operation could put user funds at risk. Redemptions would not be halted because of ordinary market volatility, or because of a black-swan market event. Markets are expected to operate through those conditions.

**Redemption is currently the only exit.** There is no external DEX liquidity for ELUSD or sELUSD today, so the primary market is the operative venue. External liquidity will be established as the protocol grows.