# Withdrawing From Junior

> Junior is the pool's first loss layer, so leaving it takes notice. The rules stop Junior lenders from exiting just ahead of a loss and passing it to those who…

Canonical: https://spout.finance/docs/junior-withdrawals/

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Junior is the pool's first loss layer, so leaving it takes notice. The rules stop Junior lenders from exiting just ahead of a loss and passing it to those who stay.

## Step by step

- Give notice Request a withdrawal. Your shares move into escrow (held by the protocol, not by you or Spout), stop earning yield, and keep bearing losses.
- Wait 45 days The notice period runs.

- Join the queue After 45 days your request joins the first in, first out queue.
- Get paid You are paid as cash comes in from settlements, repayments and new deposits, at the share value on the day you are paid, less the 0.20% withdrawal fee.

## Why Junior is paid at the payment date value

A Senior claim is fixed in dollars when it joins the queue. A Junior claim is not. If Junior lenders could lock in a value by giving notice, someone who saw a loss coming could give notice and leave the loss to everyone else. Paying at the value on the payment date keeps the first loss layer honest.

## Other limits

**The Junior minimum**: While the pool's yield rate is above Senior's 7%, a Junior withdrawal cannot take Junior below 12% of the pool.

**The cash reserve**: A Junior withdrawal cannot take the pool's available cash below 15% of its value.

**Recent bad debt**: Junior withdrawals pause while a bad debt event from the last 30 days has not yet been made good.

**Pauses**: Withdrawals pause while a liquidation settles.

## Selling your place

Junior claims in the queue can be listed for resale too. Because a Junior claim keeps bearing losses until it is paid, buyers price that risk into what they offer.

## Cancelling

Cancel at any time before you are paid. Your shares return to the pool at the current share value and start earning again. If you request again later, a new 45 day notice period starts.