# NAV ≠ Redemption Value

<Md expr="n_t" /> is an accounting value. It is not a redemption price.

<Eq expr="n_t = \frac{A_t}{N_t}" />

This is marked external assets over external HOLI. It does not say the protocol will pay <Md expr="n_t" /> in USDG (or anything else) for one HOLI.

Holders who want to exit HOLI sell into [protocol-owned LP](/pol) along the curve. That **take-up** is **continuous convertibility in the market-liquidity sense**. It is not a redemption desk. It is **not** a promise to redeem HOLI at a **fixed NAV**, a **fixed price**, or **unlimited size**.

* LP is **continuous market liquidity**. Selling HOLI is a swap into a full-range Uniswap V4 pool. The pool takes HOLI, deducts the **1% exit fee**, and releases the external asset.
* Because those LP shares are protocol-owned, the house is already taking the other side via **pre-deployed liquidity**. It does not wait for price below NAV.
* There is **no** fill-at-NAV. No guaranteed floor. No unlimited size.
* External assets actually received depend on **pool depth**, the **full-range curve**, the **then-current reserve mix**, the **1% exit fee**, and **slippage**.
* The 1% sell fee and slippage affect the **fill**, not <Md expr="n_t" />.

**Discrete buyback.** When the market price is below NAV, <Md expr="w" /> votes **whether** to spend **undeployed reserves** buying HOLI, plus **size** and **price cap**. See [Staker Rights](/staking/rights). That path is optional and **discrete**. A passed buyback is still a market purchase. It is not take-up at NAV, and it is not a fill at NAV.

So: accounting print vs executable exit. They are allowed to differ. Official NAV can diverge from the immediate exit value along the curve. When they differ, the curve, the reserve mix, the 1%, and slippage win, not <Md expr="n_t" />.