Exit and wind-down
End participation while accounting for the obligations left behind.
Exit is an obligation process
You cannot end your obligations for an asset book just by disconnecting your wallet. A voluntary exit (Wind down your institution) starts a notice period and blocks new business. Your existing responsibilities continue while the protocol processes the portfolio.
Each role has a fixed notice period that governance sets. On Real Testnet, it is 90 days for TV and SV and 180 days for IV. The IV notice does not grow with the remaining policy term; the policy-book auction handles live policies. A notice deadline does not promise that every stake position becomes withdrawable on that date.
Tokenization and scoring
When your TV service ends, your assets can need a fresh attestation from another eligible TV. Your SV service can lapse, or another SV can replace it. The token contracts stay in place when a service provider exits.
The protocol keeps two portfolios apart: the assets you service, and the liabilities you carry. If an asset becomes stale or orphaned, its notional (face value) does not automatically leave your collateral requirement. Unresolved liabilities can remain until maturity. Your stake requirement falls as the relevant obligations are actually released.
Insurance book transfer
The policy-book auction (Open policy-book auction) offers your existing policy book to eligible replacement insurers. It uses commit-reveal bidding: bidders first submit a sealed commitment (Place a sealed bid), then reveal their bids (Reveal your bid). The process then checks whether each bid is financially feasible and whether the bidder can absorb the book. The process prefers the lowest feasible premium. If a candidate fails, the process can move on to another eligible bidder.
Policy processing and economic finalization can take several transactions. When the auction settles, not every policy has necessarily moved. During the transition, handle each live claim against the policy ownership that applies to it.
If the process finds no feasible replacement, the policies can be cancelled, and all remaining Insurance stake goes to the DRF. A book with no active policies has no winning bid, so it ends the same way. Withdraw free stake before you send the notice. You cannot withdraw during the exit. See What can cost stake.
After a no-bid auction, recovery claims are recorded through the NDT/DRF interfaces. This is a loss of coverage, not guaranteed replacement insurance. See the recovery limits.
Forced exit
These events can start a forced wind-down without the ordinary voluntary notice:
- severe insurance failures
- upheld fraud
- repeated offences
- authorized governance action
Enforcement and portfolio resolution still have separate states and consequences.
Plan the exit before onboarding
Long-lived assets can leave you with long-lived collateral obligations. Before you accept an asset, find out who can replace your service, how outstanding claims will be handled, and what releases its notional from the requirement. Check both your BVID status and your remaining liability portfolio. A finished notice period is not enough on its own, and neither is an empty service list.