# 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.

**Distinguish:** HOLI's protocol-owned LP is already an **executable, always-on market take-up**, not only book reserve support. When a user sells HOLI, an external-asset/HOLI pool **releases the external asset and takes HOLI** — an **exit channel** and an **endogenous conversion**. That conversion follows the **Uniswap V4 full-range curve**: large exits **slip**; selling HOLI also burns **1% of the HOLI input** in the same transaction. So it is **not** unconditional redeem-at-fixed-NAV.

Holders who want to exit sell into [protocol-owned LP](/pol). That take-up is convertibility in the **market-liquidity** sense. It is not a redemption desk.

Fees: [Fee Structure](/treasury-mgmt/amm-fees). The 1% and slippage affect the **fill**, not <Md expr="n_t" />. Official NAV is **1× the external leg**.

**Discrete buyback.** When the market price is below NAV, <Md expr="w" /> votes **whether** to spend **undeployed reserves** buying HOLI, plus pool, size, and price cap. See [sHOLI Staking](/staking#staker-rights-and-voting-scope). The Team Safe executes `buybackAndBurn`: an approved external asset swaps through a registered Treasury HOLI pool and the HOLI output is burned in the same transaction. The contract requires market \< NAV and `minHoliOut`; Snapshot authorization and reserve limits are governance policy. Optional. Discrete. A passed buyback is still a market purchase — not take-up at NAV, not a fill at NAV.

Accounting print vs executable exit. They are allowed to differ. When they differ, the curve, the 1%, and slippage win, not <Md expr="n_t" />.