User Withdraw

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User Withdrawal Flow

The diagram shows the full process when a user withdraws their SOM tokens from the InsomniaVault.

Step-by-Step Process

1. Withdraw Call

   • The user calls withdraw(shares, receiver) to redeem their vault shares for SOM tokens.

2. Accumulate Points

   • The vault triggers accumulate(vault, user) in the PointsController to finalize the user’s point balance before reducing their shares.

3. Preview Withdraw

   • The vault runs previewWithdraw(shares) to calculate the amount of SOM tokens owed to the user.

4. Burn Shares

   • The vault executes _burn(user, shares) to destroy the user’s vault shares, reducing their proportional ownership.

5. Lockup & Penalty Check

   • If the user withdraws before the lockup expires, the vault calculates an early exit penalty.

   • Penalty = withdraw amount × configured fee (in basis points).

6. Vault Liquidity Check

   • If the vault doesn’t have enough idle SOM to fulfill the withdrawal, it calls the StrategyRouter to unwind(needed_amount, vault).

7. Adapter Withdrawals

   • The StrategyRouter calls withdrawNative() on strategy adapters to free the required liquidity.

8. Penalty Transfer (if applicable)

   • If a penalty applies, the calculated penalty portion is transferred to the Treasury.

9. Transfer Net Amount

   • The vault transfers the remaining SOM (after penalty) to the user’s receiver address.

10. Update User Index

• The vault calls updateUserIndex(vault, user) in the PointsController to reflect the user’s new position in the global index.

1. Emit Withdraw Event

• A Withdraw event is emitted for transparency, allowing off-chain systems to track withdrawals.

Additional Notes

• Partial Withdrawals: Users can withdraw a portion of their shares while leaving the rest to continue earning points and yield.

• Penalty Mechanism: Ensures fairness by discouraging early exits and funding the treasury for protocol sustainability.

• Liquidity Management: Withdrawals prioritize idle vault liquidity first, then unwind strategies only when necessary.