Instant Redeem

When a market resolves, the winning claim is worth face value, but the venue does not pay it out instantly. Instant Redeem finances that settlement gap.

The settlement gap

Between resolution and payout, a holder owns a claim that is decided but not yet paid. The value is known; the cash is not. Instant Redeem closes that interval.

The mechanics

Cusp purchases the resolved claim and pays the holder now, then collects face value from the venue at settlement:

$$\begin{aligned} \text{holder receives} \;&= (1 - d)\,V \quad\text{now} \\[2pt] \text{Cusp collects} \;&= V \quad\text{at settlement} \\[4pt] \text{per-cycle return} \;&= \frac{d}{1 - d}, \qquad \text{annualized} \approx \frac{N\,d}{1 - d} \end{aligned}$$

The economics run on capital velocity, not on a large discount. A small spread, turned over many times as claims resolve, is the return; the discount itself stays modest.

Why a purchase, not a loan

A receivable purchase is structurally simpler than a loan against a live position.

Measured failure rates are inflated conservatively before pricing.

Eligibility and delays

Only resolved claims that clear the eligibility gates are purchased. A claim whose settlement is delayed is carried at face while the delay looks ordinary and written down smoothly as distress accumulates; the formal treatment is in the Cusp whitepaper.