# Auto Redeem

Auto-redeem allows you to receive a monthly USDC airdrop based on the gains realized from your tokens from the previous month.  After opting into auto-redeem, a number of tokens equal to your gains will be removed from your wallet in exchange for their value in USDC on the **15th** of each month.

## Auto-redeem Example

A user holding 1,000 RWA Tokens, each valued at $1, opts into auto-redemption. 

On the 15th day of the following month, the value of each RWA Token has grown to $1.01, a 1% increase. The user now has an unrealized gain of **$10,** since their tokens are worth a total of $1,010**.**

The administrator wallet will automatically withdraw tokens equal to those gains, rounded down to the nearest whole number. 

In this case, the unrealized gain is $10 and the price of each token is $1.01**,** so the user will receive an airdrop of **9.09 USDC** in exchange for **9 RWA Tokens**. The remainder of unrealized gains will remain in the user's RWA Balance. 

{% hint style="info" %}
If user gains are not equal to the value of at least 1 RWA Token, the redemption will not take place.
{% endhint %}

## User Requirements

In order to be eligible for auto-redemption, a user must meet the following requirements:

* Hold at least 1,000 RWA Tokens.
* Hold the amount to be redeemed directly in your wallet. Tokens held in the NFT ecosystem cannot be redeemed but still count toward the 1,000 minimum.