> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincode.technology/llms.txt
> Use this file to discover all available pages before exploring further.

# Withdrawal Process

This guide details the process for withdrawing funds from investment portfolios, including maturity withdrawals and early withdrawal options.

<Note>
  The withdrawal process covers **Maturity Withdrawals**, **Early Withdrawals**, **Fund Transfer**, and **Portfolio Closure**.
</Note>

## Withdrawal Overview

Investment withdrawals allow customers to access their invested funds and accrued interest. The process varies based on investment type, maturity status, and product terms.

```mermaid theme={null}
flowchart LR
    A[Investment Matures] --> B[Withdrawal Available]
    B --> C[Request Withdrawal]
    C --> D[Process Withdrawal]
    D --> E[Funds to Wallet]
    E --> F[Portfolio Closed]
```

## Phase 1: Maturity Withdrawal

### 1.1 Automatic Maturity Processing

When an investment reaches maturity, funds become available for withdrawal.

```mermaid theme={null}
sequenceDiagram
    participant System
    participant PortfolioService
    participant InterestService
    participant WalletService

    System->>PortfolioService: Check Maturity Dates
    PortfolioService->>PortfolioService: Identify Matured Investments
    PortfolioService->>InterestService: Calculate Final Interest
    InterestService-->>PortfolioService: Final Interest Amount
    PortfolioService->>PortfolioService: Calculate Total Payable
    PortfolioService->>WalletService: Credit Wallet
    WalletService->>WalletService: Process Credit
    WalletService-->>PortfolioService: Credit Confirmed
    PortfolioService->>PortfolioService: Close Portfolio
    PortfolioService-->>System: Withdrawal Complete
```

### Maturity Withdrawal Steps

<Steps>
  <Step title="Maturity Detection">
    System automatically detects when investments reach their maturity date.
  </Step>

  <Step title="Calculate Final Amount">
    System calculates:

    * **Principal Amount**: Original investment
    * **Accrued Interest**: Total interest earned
    * **Total Payable**: Principal + Interest
  </Step>

  <Step title="Credit Wallet">
    System automatically credits the customer's wallet with the total payable amount.
  </Step>

  <Step title="Close Portfolio">
    Portfolio is marked as closed and moved to investment history.
  </Step>
</Steps>

<Info>
  For fixed-term investments, funds are automatically credited to the wallet upon maturity. No customer action is required.
</Info>

## Phase 2: Early Withdrawal

### 2.1 Request Early Withdrawal

Some investment products may allow early withdrawal before maturity, subject to terms and conditions.

```mermaid theme={null}
sequenceDiagram
    participant Customer
    participant App
    participant API
    participant PortfolioService
    participant ProductService
    participant WalletService

    Customer->>App: Request Early Withdrawal
    App->>API: POST /withdraw/{portfolio-id}
    API->>ProductService: Check Product Terms
    ProductService-->>API: Withdrawal Allowed
    API->>PortfolioService: Process Withdrawal
    PortfolioService->>PortfolioService: Calculate Early Withdrawal Amount
    PortfolioService->>PortfolioService: Apply Penalties (if any)
    PortfolioService->>WalletService: Credit Wallet
    WalletService-->>PortfolioService: Credit Confirmed
    PortfolioService->>PortfolioService: Close Portfolio
    PortfolioService-->>API: Withdrawal Processed
    API-->>App: Withdrawal Confirmed
    App-->>Customer: Funds Available
```

<Warning>
  Early withdrawals may be subject to penalties or reduced interest rates depending on the product terms. Always review product terms before requesting early withdrawal.
</Warning>

### Early Withdrawal Considerations

* **Product Terms**: Check if early withdrawal is allowed
* **Penalties**: May incur penalties or forfeit interest
* **Processing Time**: May take longer than maturity withdrawals
* **Partial Withdrawal**: Some products may allow partial withdrawals

## Phase 3: Withdrawal to Wallet

### 3.1 Fund Transfer Process

Withdrawn funds are credited to the customer's investment wallet.

```mermaid theme={null}
sequenceDiagram
    participant PortfolioService
    participant WalletService
    participant Customer

    PortfolioService->>WalletService: Credit Request
    WalletService->>WalletService: Validate Wallet
    WalletService->>WalletService: Process Credit
    WalletService->>WalletService: Update Balance
    WalletService-->>PortfolioService: Credit Confirmed
    PortfolioService->>Customer: Notification Sent
```

### Wallet Credit Details

* **Automatic Credit**: Funds are automatically credited to the investment wallet
* **Balance Update**: Wallet balance is updated immediately
* **Transaction Record**: Withdrawal transaction is recorded
* **Notification**: Customer receives confirmation notification

<Info>
  Withdrawn funds are credited to the same wallet used for the investment. Customers can then transfer funds from the wallet to their bank account if needed.
</Info>

## Phase 4: Portfolio Closure

### 4.1 Close Investment Portfolio

After withdrawal, the portfolio is closed and moved to investment history.

```mermaid theme={null}
flowchart TD
    A[Withdrawal Processed] --> B[Update Portfolio Status]
    B --> C[Mark as Closed]
    C --> D[Move to History]
    D --> E[Archive Records]
    E --> F[Portfolio Closed]
```

### Portfolio Closure Steps

<Steps>
  <Step title="Update Status">
    Portfolio status is updated to "CLOSED" or "WITHDRAWN".
  </Step>

  <Step title="Record Final Amount">
    System records:

    * Final withdrawal amount
    * Total interest earned
    * Investment duration
    * Withdrawal date
  </Step>

  <Step title="Move to History">
    Portfolio is moved to investment history for record-keeping.
  </Step>

  <Step title="Update Dashboard">
    Customer dashboard is updated to reflect closed portfolio.
  </Step>
</Steps>

## Withdrawal Types

### Automatic Maturity Withdrawal

* **Trigger**: Investment reaches maturity date
* **Process**: Automatic, no customer action required
* **Timing**: Processed on maturity date
* **Amount**: Full principal + accrued interest

### Manual Early Withdrawal

* **Trigger**: Customer request before maturity
* **Process**: Requires customer action via API
* **Timing**: Processed upon request
* **Amount**: May be reduced by penalties

### Partial Withdrawal

* **Availability**: Depends on product terms
* **Process**: Customer specifies withdrawal amount
* **Portfolio**: Remains active with reduced balance
* **Interest**: Continues to accrue on remaining balance

## Withdrawal Flow Diagram

```mermaid theme={null}
flowchart TD
    Start([Investment Active]) --> CheckMaturity{Maturity Reached?}
    CheckMaturity -->|Yes| AutoWithdraw[Automatic Withdrawal]
    CheckMaturity -->|No| CheckEarly{Early Withdrawal Request?}
    CheckEarly -->|Yes| ValidateEarly{Product Allows?}
    ValidateEarly -->|Yes| ProcessEarly[Process Early Withdrawal]
    ValidateEarly -->|No| Reject[Reject Request]
    ProcessEarly --> CalculateAmount[Calculate Withdrawal Amount]
    AutoWithdraw --> CalculateAmount
    CalculateAmount --> ApplyPenalties{Apply Penalties?}
    ApplyPenalties -->|Yes| ReduceAmount[Reduce Amount]
    ApplyPenalties -->|No| CreditWallet[Credit Wallet]
    ReduceAmount --> CreditWallet
    CreditWallet --> ClosePortfolio[Close Portfolio]
    ClosePortfolio --> UpdateHistory[Update History]
    UpdateHistory --> NotifyCustomer[Notify Customer]
    NotifyCustomer --> End([Withdrawal Complete])
    Reject --> End
```

## Key Concepts

### Maturity Date

* **Fixed Term**: Investments have defined maturity dates
* **Automatic Processing**: Matured investments are processed automatically
* **No Action Required**: Customers don't need to request maturity withdrawals
* **Full Amount**: Full principal and interest are paid at maturity

### Early Withdrawal Terms

* **Product-Specific**: Terms vary by investment product
* **Penalties**: May include penalties or reduced interest
* **Processing**: May require manual review
* **Availability**: Not all products allow early withdrawal

### Withdrawal Amount Calculation

* **Principal**: Original investment amount
* **Accrued Interest**: Interest earned to date
* **Penalties**: Deducted for early withdrawals (if applicable)
* **Total Payable**: Final amount credited to wallet

<Card title="Learn More" href="/investment/portfolio-management">
  Explore portfolio management and tracking.
</Card>

<Card title="View Process Flow" href="/investment/process-flow">
  See the complete investment process flow.
</Card>