> For the complete documentation index, see [llms.txt](https://docs.re.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.re.xyz/products/about-reusde.md).
# About reUSDe
## What reUSDe is
reUSDe is Re Protocol's **mezzanine tranche token** that sits between the reinsurer's equity and the senior reUSD tranche. Whereas reUSD is designed for capital preservation, reUSDe is designed for **return maximization**: it earns a substantially higher potential yield in exchange for absorbing potential underwriting losses before reUSD holders are affected.
See the Re App's [metrics page](https://app.re.xyz/metrics) for more information.
## Why the yield is higher
reUSDe earns the risk-free rate plus an 850 bps (8.5%) spread, against a 250 bps spread for reUSD. The base rate is the reference carry on the assets backing the token. The 8.5% spread is the premium reUSDe earns from Re's regulated reinsurance underwriting, and it's wider than reUSD's because reUSDe sits in the mezzanine tranche and absorbs losses first.
reUSDe is the second layer to take portfolio losses. If Re's reinsurance portfolio produces losses beyond the reinsurer's own equity layer ($77M as of June 2026), the excess reduces reUSDe's NAV before reUSD is touched. In a year with no qualifying losses, that layer isn't drawn and reUSDe holders earn the full spread for carrying the risk. No underwriting year has reached reUSDe to date. It remains a loss-absorbing instrument: its NAV tracks the performance of the underlying contracts and can fall.
Re's internal stress modeling puts the probability of a reUSDe impairment at roughly 0.9% under a 115% combined ratio, a severe stress scenario, against roughly 0.03% for reUSD.
## How it fits in the waterfall
*reUSDe is the mezzanine tranche: it absorbs losses after the junior layer (Re's accumulated capital and reserves) is exhausted but before reUSD holders are affected.*
## How to enter and exit
### Entering (minting)
Connect wallet → complete KYC → accept the terms and Token Purchase Agreement deposit USDe or sUSDe → mint reUSDe to your wallet.
### Exiting (quarterly redemption window)
Redemptions are planned to run quarterly. Before each window, Re's independent actuary determines how much surplus capital can be released from active treaties and trust accounts. That amount is also governed by regulatory requirements, and collateral cannot be released without regulatory approval. The released surplus funds the redemption pool for that window, which is the amount available to pay out, denominated in sUSDe.
#### The process
**1. Submit your request**
During the announced window, submit a request for the amount of reUSDe you want to redeem. You need to be KYC approved, and the window has to be open. While the window is open, you can increase, decrease, or cancel your request at any time before the submission deadline. Your reUSDe is held by the redemption contract from the moment you submit until you claim or cancel.
**2. Window closes and settles**
After the submission deadline passes, Re closes the window. The reUSDe redemption price (NAV) is locked in, the pool is funded with the released surplus, sized within actuarial and regulatory limits, and a single fill rate is set for everyone in the window.
**3. Pro-rata fill**
If total requests come to the available surplus or less, every request is filled in full. If requests are larger than the surplus, each holder is filled at the same proportional rate. Everyone in the window is treated equally, with no queue and no seniority ordering.
**4. Claim your payout**
Once the window settles, the claim period opens and runs for 30 days. When you claim, you receive your payout in sUSDe.
Any unfilled reUSDe is returned to your wallet in the same claim transaction.
KYC is checked again when you claim.
{% hint style="warning" %}
**Don't miss the claim window.** If the 30-day claim period elapses without you claiming, the sUSDe payout for that window is forfeited and only your original reUSDe is returned (it is never burned unless you claim). Set a reminder for when claims open.
{% endhint %}
***
*For educational and informational purposes only. Nothing on this Site is investment, financial, legal, or tax advice, or an offer, solicitation, or recommendation to buy, sell, or hold any digital asset, including reUSD and reUSDe. Yields are not guaranteed and all figures are illustrative, not a promise of return; past performance is not a reliable indicator of future results. Digital assets involve significant risk, including total loss of principal — the Tokens are not bank deposits and are not insured by any government agency. The Tokens are available only to eligible non-U.S. persons in permitted jurisdictions and are subject to KYC/AML requirements. The binding terms of the applicable agreements govern and prevail over this summary. See our full* [*Disclosures*](https://re.xyz/disclosure) *for important additional information.*