> For the complete documentation index, see [llms.txt](https://bitprotocol.gitbook.io/bitprotocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitprotocol.gitbook.io/bitprotocol/v2-features/v2-frontend/redeem.md).

# Redeem

BitUSD v2 allows you to redeem BitUSD directly for the underlying collateral at any time.

* **1 BitUSD is always redeemable for $1 worth of collateral.**
* When you redeem, the protocol burns your BitUSD and returns the equivalent value in collateral (e.g., ROSE, wstROSE).

This ensures the stability and peg of BitUSD.

<figure><img src="https://4014914631-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvvwuEJ5drMEbA7hiVKkJ%2Fuploads%2FUqb0tGBNBYElpxfA35Jr%2FScreenshot%202025-08-29%20at%2016.59.13.png?alt=media&amp;token=d43d08cf-7339-4e85-bea2-26a4077def18" alt=""><figcaption></figcaption></figure>

### 🪙 Step 1 – Select Collateral to Redeem For

* Choose the collateral type (e.g., **ROSE**).
* Enter the amount of **BitUSD** you want to redeem.
* Your available balance is shown (e.g., 500 BitUSD).

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### ⚖️ Step 2 – Review Redemption Fee

* A small **redemption fee** applies to every redemption.
* The fee is dynamic and updates every 30 seconds.
* Example: **1% redemption fee**.

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### 📊 Step 3 – Redemption Summary

The summary box shows exactly what you’ll receive:

* **Collateral Price:** Current market price of the collateral.
* **Redemption Fee:** Percentage applied to your redemption.
* **Redemption Fee Amount:** The portion deducted as fees (in collateral).
* **Expected Collateral Received:** Total collateral you’ll receive after fees.
* **Value of Collateral Received:** USD value equivalent of your redemption.
* **Actual Redemption Amount:** Final BitUSD converted after fee deductions.

Example:

* You redeem **5.75 BitUSD**.
* After fees, you receive **12.77 ROSE** worth $4.53.
* Actual redemption = **5.043 BitUSD equivalent**.

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### 🚀 Step 4 – Redeem

* Click **Redeem** to execute the transaction.
* Confirm in your wallet.
* Your BitUSD is burned, and collateral is sent to your wallet.