> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/p10-index/mint-and-redeem.md).

# Mint & Redeem

### TL;DR

* **Mint** → deposit assets → receive P10
* **Redeem** → return P10 → receive assets
* **Pricing** → based on NAV
* **Fees** → 0.10% mint / 0.10% redeem

***

### The Price (NAV)

P10 is priced using:

**NAV = Σ (wᵢ × Pᵢ)**

Where:

* **wᵢ** = asset weight
* **Pᵢ** = oracle price

***

👉 This ensures:

* fair valuation
* transparent pricing
* no hidden adjustments

***

### Two Ways to Use P10

#### 1. Simple Mode (Single Asset)

Best for most users.

***

#### Mint

You deposit:

* BNB / USDT / USDC / XPGN

The protocol:

* routes via the execution layer
* acquires the basket
* mints P10

***

#### Redeem

You choose:

* a single asset → automatically routed
* the full basket → received directly

***

#### Benefits

* simplified experience
* automatic routing
* efficient execution

***

👉 Most users will use this mode.

***

#### 2. Pro Mode (Basket In / Out)

Best for:

* funds
* advanced users
* large allocations

***

#### Mint

* supply the exact basket
* receive P10

***

#### Redeem

* burn P10
* receive the full basket

***

#### Benefits

* no routing costs
* minimal slippage
* precise NAV tracking

***

👉 Designed for size and efficiency.

***

### How Mint Works

#### Step 1 — Quote

* NAV is calculated via oracles
* expected output is shown

***

#### Step 2 — Guard Setup

* minimum output derived
* safety buffer applied

***

#### Step 3 — Execution

* routing is optimized
* execution conditions validated

***

#### Step 4 — Settlement

* P10 is minted and delivered
* any execution improvements are handled separately

***

### How Redeem Works

#### Basket Mode

* receive underlying assets directly
* no routing required

***

#### Single Asset Mode

* routing into a chosen asset
* execution validated before settlement

***

👉 All flows enforce minimum output protection.

***

### Fees

* **Mint:** 0.10%
* **Redeem:** 0.10%

***

👉 Fees are fixed and transparent.

***

### Execution Improvements

If routing results in better execution than expected, additional value may be returned to the user.

📌 See **Surplus & Rebates** for full details.

***

### Safety Guards

Before execution:

* oracle freshness checks
* deviation validation
* TWAP cross-checks

***

If validation fails:

* minting is paused
* redemption remains available

***

👉 User exit is always prioritized.

***

### Limits

* per-transaction mint caps
* daily mint limits
* minimum size requirements

***

👉 Designed to prevent:

* manipulation
* abuse
* instability

***

### Testnet vs Mainnet

#### Testnet (Current)

* synthetic tracking
* controlled deviation (\~±3%)
* full execution flow enabled

***

#### Mainnet

P10 is designed to operate using a **basket-backed model**:

* real underlying assets
* permissionless mint and redeem
* transparent on-chain tracking

***

👉 Alternative structures may be introduced via governance if required.

***

### Why Price Stays Close to NAV

Arbitrage maintains alignment:

* If P10 > NAV → mint → sell
* If P10 < NAV → buy → redeem

***

👉 This keeps market price close to NAV.

***

### What You’ll See in the UI

* NAV price
* minimum received
* validation status
* execution details
* simple vs pro mode toggle

***

### ⚠️ Important Notes

* P10 excludes stablecoins
* composition updates periodically
* minting may pause if unsafe
* redemption remains available

***

### Summary

* mint and redeem at NAV
* choose simple or advanced mode
* protected by oracle validation
* optimized through execution routing

P10 provides transparent, on-chain mint and redeem flows designed for both ease of use and precise capital deployment.


---

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