diff --git a/docs/docs/glossary.mdx b/docs/docs/glossary.mdx
index bfed1407..76025d42 100644
--- a/docs/docs/glossary.mdx
+++ b/docs/docs/glossary.mdx
@@ -50,10 +50,10 @@ The StakeWise smart contract that coordinates communication between the Operator
 The original validator type with a fixed stake of 32 ETH (or 1 GNO on Gnosis Chain). These validators automatically sweep excess balance above 32 ETH back to the withdrawal address. No top-up funding is available for 0x01 validators.
 
 ### Liquidation
-In 90% LTV Vaults, the process of closing an unhealthy osToken position that exceeds 92% LTV. Anyone can liquidate by burning all minted osTokens against the collateral. The liquidator receives the underlying collateral value plus a 1% premium, with the penalty deducted from the staker's collateral. Positions in 99.99% LTV Vaults are exempt from liquidation.
+In 90% LTV Vaults, the process of closing an unhealthy osToken position that exceeds 92% LTV. Anyone can liquidate by burning all minted osTokens against the collateral. The liquidator receives the underlying collateral value plus a 1% premium, with the penalty deducted from the staker's collateral. Positions in 100% LTV Vaults are exempt from liquidation.
 
 ### LTV (Loan-to-Value)
-The ratio of minted osToken value to staked collateral value, expressed as a percentage. Standard Vaults have 90% LTV, while DAO-approved Vaults can have up to 99.99% LTV (osETH) or 99.95% LTV (osGNO). This determines the maximum amount of osToken that can be minted against staked assets.
+The ratio of minted osToken value to staked collateral value, expressed as a percentage. Standard Vaults have 90% LTV, while DAO-approved Vaults can have up to 100% LTV (osETH) or 99.95% LTV (osGNO). This determines the maximum amount of osToken that can be minted against staked assets.
 
 ### Meta Vault
 A Vault type that does not register validators directly, instead delegating accumulated assets to sub-Vaults managed by the Vault Admin. Deposits are distributed across underlying sub-Vaults (up to 50 maximum) according to curator-defined allocation logic.
diff --git a/docs/docs/ostoken/how-ostoken-works.mdx b/docs/docs/ostoken/how-ostoken-works.mdx
index b4ed2a51..59747eb2 100644
--- a/docs/docs/ostoken/how-ostoken-works.mdx
+++ b/docs/docs/ostoken/how-ostoken-works.mdx
@@ -1,239 +1,207 @@
 ---
 title: How osToken Works
-description: Learn about osToken minting, burning, exchange rate, and peg maintenance
+description: Learn how osToken works.
 ---
 
 import Image from '@theme/IdealImage'
 
 # How osToken Works
 
-osToken turns staked ETH or GNO into liquid, yield-bearing assets. Its operation is governed by four core mechanisms:
-minting, burning, exchange rate appreciation, and peg maintenance.
+osToken is created through **minting** — issuing new osToken against ETH or GNO staked as collateral in a Vault. A maximum **Loan-to-Value (LTV)** ratio caps how much can be minted against a given stake, keeping every osToken overcollateralized.
 
-## Minting
+As the staked collateral accrues rewards, each osToken is worth more ETH or GNO over time. This appreciation is tracked by the osToken **exchange rate** — the protocol-calculated conversion rate between osToken and the underlying asset. This rate is osToken's **fair value**: what one osToken is genuinely worth at any moment.
 
-Minting involves staking assets into a Vault and issuing osTokens against those staked assets acting as collateral. Minting limits are in place to ensure each issued token is fully backed. These limits are set by the **Loan-to-Value (LTV) ratio**.
+On the open market, osToken's price can drift from this fair value, but the protocol keeps it **soft-pegged** to the exchange rate from both sides:
 
-### Loan-to-Value Limits
+- When osToken trades at a **premium**, anyone can stake, mint at the protocol rate, and sell, pushing the price back down.
+- When it trades at a **discount**, **redemptions** convert osToken back to ETH or GNO at the exchange rate, pushing the price back up.
 
-The LTV ratio determines what portion of your stake can be tokenized with osToken:
+The protocol keeps every position collateralized: if a rising exchange rate pushes its LTV too high, **liquidations** restore healthy collateralization as a last resort.
 
-| Vault Type     | Ethereum (osETH) | Gnosis (osGNO) | Safety Mechanism                 |
-|----------------|------------------|----------------|----------------------------------|
-| Standard       | 90% LTV          | 90% LTV        | 10% overcollateralization buffer |
-| DAO-Approved   | 99.99% LTV       | 99.95% LTV     | 5M SWISE operator bond           |
+Together, these mechanisms keep osToken safe to hold and use.
 
-This ensures that even if some validators get slashed, there are enough assets to back all outstanding osTokens.
+## How to Get osToken
 
-### LTV Threshold Settings
+There are three ways to get osToken:
 
-The StakeWise DAO sets **Loan-to-Value (LTV) thresholds** that determine how much osToken can be minted against staked assets in each Vault.
+- [Stake on the main app page](/staker/simple-staking) — the ETH is routed through a [MetaVault](/docs/vaults/meta-vaults) that distributes deposits across the best-performing Sub-vaults (currently just the [Genesis Vault ↗](https://app.stakewise.io/vault/mainnet/0xac0f906e433d58fa868f936e8a43230473652885)), and osToken is minted against the stake automatically.
+- [Pick a specific Vault from the marketplace](/staker/vault-staking) — stake into it, then optionally mint osToken against the stake.
+- Buy osToken on a DEX.
 
-**Standard Vaults**
-- **Default LTV**: 90% of staked ETH/GNO value
-- All Vaults can mint osToken up to this threshold by default
+## LTV Ratio
 
-**DAO-approved Vaults**
-- **Enhanced LTV**: Up to 99.99% of staked value
-- Reserved for DAO-approved Vaults meeting strict performance criteria
-
-:::custom-notes[DAO-approved Vault Requirements]
-To qualify for the 99.99% LTV threshold, Vaults must meet all criteria:
-
-- **Scale**: Minimum 10,000 ETH staked
-- **Fee Cap**: Maximum 5% Vault fee
-- **Performance**: Consistently above median network performance
-- **Technology**: Latest Vault version deployed
-- **Collateral**: 5M SWISE tokens locked as slashing insurance
-:::
-
-StakeWise DAO has the capability to increase or decrease the osETH minting threshold based on any given Vault's risk parameters.
+The LTV ratio creates a buffer between the collateral and the issued osToken.
 
 :::custom-notes[Example]
-  With 100 ETH staked in a 90% LTV Vault at 1.05 exchange rate:
+With 100 ETH staked in a 90% LTV Vault at 1.05 exchange rate:
 
-  - Maximum mintable osETH: `100 × 0.9 ÷ 1.05 = 85.71 osETH`
-  - Overcollateralization: `10 ETH` remains as safety buffer
+- Maximum mintable osToken: `100 × 0.9 ÷ 1.05 = 85.71 osToken`
+- Overcollateralization: `10 ETH` remains as safety buffer
 :::
 
-### Minting & Buying Options
+LTV limits vary by Vault type:
 
-osToken can be acquired via four methods:
+| Vault Type     | Ethereum (osETH) | Gnosis (osGNO) | Safety Mechanism                              |
+|----------------|------------------|----------------|-----------------------------------------------|
+| Standard       | 90% LTV          | 90% LTV        | 10% overcollateralization buffer              |
+| DAO-approved   | 100% LTV         | 99.95% LTV     | 5M SWISE operator bond |
 
-1. **Simple staking** – Deposit ETH or GNO through the [StakeWise App ↗](https://app.stakewise.io/) to receive osETH or osGNO. No validator setup or Vault selection required.
-2. **Vault staking** – Select a specific Vault (operator, fees, performance). Rewards and penalties are isolated per Vault. Minting capacity is constrained by LTV limits.
-3. **Solo staking** – Operate private validators and mint osTokens against self-staked collateral, retaining full infrastructure control. Minting capacity is constrained by LTV limits.
-4. **DEX purchase** – Acquire osTokens on decentralized exchanges. Tokens have the same exchange-rate appreciation as minted tokens and do not create a Vault position (no LTV or liquidation exposure).
+To qualify for the 100% LTV, Vaults must meet strict performance criteria<sup><a href="#fn-1" id="fnref-1">1</a></sup> and post a SWISE operator bond.
+StakeWise DAO can adjust any individual Vault's LTV based on its risk profile.
 
-All methods yield the same asset that appreciates through the same exchange rate mechanism.
+The protocol continuously tracks each position's LTV against the liquidation threshold and puts it into one of four grades — Healthy, Moderate, Risky, and Unhealthy. A **Risky** position is subject to [redemption](#redemption); an **Unhealthy** one to [liquidation](#liquidation). These grades don't apply in **DAO-approved Vaults**.
 
-:::custom-notes[Deep Dive]
-Find step-by-step instructions for each staking option in the [Staker Guide →](/staker/introduction).
-:::
-
-### Position Health
+<Image img={require('./img/grade.png')} alt="osToken position health grades - Healthy, Moderate, Risky, Unhealthy" />
 
-Position health is continuously tracked through LTV thresholds:
+## Exchange Rate
 
-<Image img={require('./img/grade.png')} alt="osToken position health grades - Healthy, Moderate, Risky, Unhealthy" />
+The osToken **exchange rate** is the protocol-calculated conversion rate between osToken and its underlying staked asset (ETH or GNO).
 
-Positions that exceed **91.5% LTV** become eligible for [redemption](#redemption-mechanism), and those above **92% LTV** are subject to [liquidation](#liquidation-mechanism).
+The [`OsTokenVaultController` ↗](https://etherscan.io/address/0x2A261e60FB14586B474C208b1B7AC6D0f5000306) contract keeps two running totals: the total osToken supply (`totalShares`) and the total assets backing it (`totalAssets`). The exchange rate is the ratio between them:
 
-Users can maintain healthy positions by keeping LTV well below limits, adding more collateral, or burning osToken.
-In 99.99% (osETH) / 99.95% (osGNO) Vaults, redemptions and liquidations do not apply, positions remain healthy by design.
+```
+exchangeRate = totalAssets ÷ totalShares
+```
 
-## Burning
+This is what the contract computes whenever it converts between osToken and the underlying asset (`convertToAssets`), so one osToken is always worth `totalAssets ÷ totalShares` of ETH or GNO.
 
-Burning is the process of returning minted osTokens to the Vault in exchange for unlocking the staked collateral that backs them.
-To fully unstake, a user must burn the entire amount of osTokens they minted, plus any protocol fees accrued.
+The rate rises as staking rewards accrue. On each state update, the protocol adds the newly accrued profit to `totalAssets`, at a pace set by the `avgRewardPerSecond` variable:
 
-Partial burns are also possible, allowing users to reduce debt, improve position health, or free up a portion of their stake.
-The burn amount is calculated using the current fair exchange rate to ensure that the redeemed assets always match the true underlying value of the returned tokens.
+```
+profit = avgRewardPerSecond × totalAssets × timeElapsed
+```
 
-The amount of ETH that can be unstaked at any moment is determined by maintaining the osToken position within its healthy Loan-to-Value (LTV) range.
-After unstaking, the value of minted osETH must remain at or below:
-- **90%** of staked ETH in a **90% LTV Vault**
-- **99.99%** of staked ETH in a **99.99% LTV Vault**
+Because the osToken supply (`totalShares`) doesn't grow with it, the same number of tokens is backed by more assets, so each osToken is worth more. A portion of this profit (`feePercent`) is minted as new osToken to the DAO treasury; the remainder grows the exchange rate for all holders.
 
-The protocol calculates the **maximum unstakable ETH** as:
+Only the [`Keeper` ↗](https://etherscan.io/address/0x6B5815467da09DaA7DC83Db21c9239d98Bb487b5) contract — the rewards aggregator for StakeWise's decentralized oracle network — can update `avgRewardPerSecond`. Off-chain, oracles identify the most exposed user (highest LTV across DAO-approved Vaults) and match `avgRewardPerSecond` to that user's Vault APY.
 
-:::custom-notes[Formula - 90% LTV]
-$$
-{\small MaxUnstakeableETH = StakedETH - \dfrac{osETHMinted \times ExchangeRate}{0.9}}
-$$
-:::
+This guarantees osToken appreciation never outpaces the collateral backing it: even the most exposed position grows fast enough to stay solvent.
 
-:::custom-notes[Formula – 99.99% LTV]
-$$
-{\small MaxUnstakeableETH = StakedETH - \dfrac{osETHMinted \times ExchangeRate}{0.9999}}
-$$
-:::
+## Redemption
 
-:::custom-notes[Example: Bob's 90% LTV Position]
-Bob stakes **100 ETH** and mints **50 osETH** at an exchange rate of **1.05 ETH/osETH**.
-- Value of minted osETH: `50 × 1.05 = 52.5 ETH`
-- Position health: `52.5 ÷ 100 = 52.5%` → safely below **90%**
-- Maximum unstakable ETH: `100 − (52.5 ÷ 0.9) = 41.667 ETH`
+Redemption is the process of converting osToken back to its underlying asset (ETH or GNO) at the protocol exchange rate.
 
-After unstaking **41.667 ETH**, Bob's position health = **90%**
-:::
+StakeWise manages redemptions through the [`OsTokenRedeemer` ↗](https://etherscan.io/address/0xc43A7b16A7a167c0318390Cba16787C11e9e1FD0) contract. Vaults version 1 (mainnet only) retain a permissionless mechanism that's currently disabled.
 
-:::custom-notes[Alice's 99.99% LTV Position]
-Alice stakes **100 ETH** and mints **50 osETH** at the same **1.05** rate.
-- Value of minted osETH: `52.5 ETH`
-- Position health: `52.5 ÷ 100 = 52.5%` → well below **99.99%**
-- Maximum unstakable ETH: `100 − (52.5 ÷ 0.9999) = 47.495 ETH`
+### Managed Redemption
 
-After unstaking **47.495 ETH**, Alice's position health = **99.99%**
-:::
+osToken's market price on DEXes can drift from the protocol exchange rate. StakeWise monitors this spread and performs redemptions whenever osToken trades at a discount.
 
-## Peg Maintenance
+See [osToken Redemptions](/docs/ostoken/ostoken-redemptions) for the exact mechanics.
 
-osToken maintains a soft peg to its underlying asset (ETH or GNO) through minting, redemptions, and liquidations.
-Minting helps prevent secondary market premiums on osTokens.
-Redemption acts as early intervention when positions drift toward risky erosion of collateral,
-while liquidation serves as the last resort for closing thinly collateralized positions.
-Together, they create arbitrage opportunities that keep osToken's market price closely aligned with its fair exchange rate.
+### Permissionless Redemption
 
-### Redemption Mechanism
+This mechanism exists only on Version 1 Vaults (mainnet) and is currently disabled. The description below covers how it works when active.
 
-In **90% LTV Vaults**, the redemption mechanism activates when a position's Loan-to-Value (LTV) reaches the **redemption threshold of 91.5%**.
-At this point, anyone can burn part of that position's osTokens in exchange for an equivalent share of the Vault's collateral.
-The burn amount is calculated so that the position's LTV is restored precisely to 90%.
-Importantly, the staker whose tokens are redeemed does not lose value – they keep the osTokens burned on their behalf.
+When a position's LTV crosses 91.5%, anyone can redeem part of its osToken against its collateral to restore the LTV to 90%.
 
 :::custom-notes[Formula: Redeemable Amount (90% LTV)]
 $$
-{\small Redeemable\ osETH = \frac{10 \times Minted\ osETH \times Exchange\ Rate - 9 \times Staked\ ETH}{Exchange\ Rate}}
+{\small Redeemable\ osToken = \frac{Minted\ osToken \times Exchange\ Rate - 0.9 \times Staked\ ETH}{0.1 \times Exchange\ Rate}}
 $$
+
+Derived by solving `(Minted − R) × Rate / (Staked − R × Rate) = 0.9`, where `R` is the redeemable osToken amount.
 :::
 
-:::custom-notes[Example: Bob's Redemption at 91.6% LTV]
-Bob stakes **100 ETH** and mints **87.238 osETH** at an exchange rate of **1.05 ETH/osETH**.
+:::custom-notes[Example: Redemption Above the 91.5% Threshold]
+Bob stakes **100 ETH** and mints **85.714 osToken** at an exchange rate of **1.05 ETH/osToken** — the 90% LTV cap.
 
-- Value of minted osETH: `87.238 × 1.05 = 91.6 ETH`
-- Loan-to-Value: `91.6 ÷ 100 = 91.6%` → above **91.5% threshold**
+Over time, the exchange rate rises to **1.0687**, lifting his LTV:
+- Value of minted osToken: `85.714 × 1.0687 ≈ 91.6 ETH`
+- Loan-to-Value: `91.6 ETH ÷ 100 ETH = 91.6%` → above **91.5% threshold**
 
 **Redemption calculation:**
-- Redeemable osETH = `(10 × 87.238 × 1.05 - 9 × 100) ÷ 1.05 = 15.238`
-- Redeemer burns **15.238 osETH** and receives **16 ETH**
+- Redeemable osToken = `(85.714 × 1.0687 − 0.9 × 100) ÷ (0.1 × 1.0687) = 1.6 ÷ 0.10687 ≈ 14.97`
+- The redeemer burns **14.97 osToken** and receives **16 ETH** from Bob's collateral (`14.97 × 1.0687`)
 
 **After redemption:**
-- Bob's minted balance: **72 osETH**
+- Bob's minted balance: **70.74 osToken**
 - Bob's staked collateral: **84 ETH**
-- New LTV: **90%** (restored to safety)
-- Bob **retains the 15.238 osETH** burned on his behalf → **no value lost**
+- New LTV: `(70.74 × 1.0687) ÷ 84 ETH = 90%` (restored to the cap)
+- The position shrinks at fair value: the released ETH matches the debt cleared at the protocol exchange rate, with no value lost.
 :::
 
-Positions in **99.99% LTV Vaults** are also subject to redemption, with amounts redeemed determined by the protocol's redemption request volume.
-The LTV of redeemed positions will remain above or equal to 99.99% after redemption, not affecting the position owner in any scenario.
+## Liquidation
 
-### Liquidation Mechanism
+Liquidation is the last resort for closing thinly collateralized positions. In **90% LTV Vaults**, the liquidation threshold is set to **92% LTV**: when a position crosses it, anyone can liquidate part or all of it.
 
-Liquidation is the system's final safeguard, closing unhealthy positions to protect overcollateralization.
-In **90% LTV Vaults**, if a position exceeds the **92% LTV liquidation threshold**, anyone can close it entirely by burning all minted osTokens against the collateral.
-The liquidator receives the underlying collateral value plus a **1% liquidation premium**, deducted from the staker's collateral as a penalty.
+A liquidator burns their own osToken to clear a portion of the staker's debt and receives the underlying value plus a **1% premium**, deducted from the staker's collateral.
 
 :::custom-notes[Formula: Liquidation Payout]
 $$
-{\small ETH\ Payout = (Minted\ osETH \times Exchange\ Rate) \times 1.01}
+{\small ETH\ Payout = (Burned\ osToken \times Exchange\ Rate) \times 1.01}
 $$
 :::
 
-:::custom-notes[Example: Alice's Liquidation at 92% LTV]
-Alice stakes **100 ETH** and mints **87.629 osETH** at an exchange rate of **1.05 ETH/osETH**.
+:::custom-notes[Example: Full Liquidation at 92.01% LTV]
+Alice stakes **100 ETH** and mints **85.714 osToken** at an exchange rate of **1.05 ETH/osToken** — the 90% LTV cap.
 
-- Value of minted osETH: `87.629 × 1.05 = 92.01 ETH`
-- Loan-to-Value: `92.01 ÷ 100 = 92.01%` → above **92% threshold**
+Over time, the exchange rate rises to **1.0735**, lifting her LTV past the **92% liquidation threshold**:
+- Value of minted osToken: `85.714 × 1.0735 ≈ 92.01 ETH`
+- Loan-to-Value: `92.01 ETH ÷ 100 ETH = 92.01%` → above the **92% threshold**
 
-**Liquidation process:**
-- ETH payout = `(87.629 × 1.05) × 1.01 = 92.93 ETH`
-- Liquidator burns **87.629 osETH** and receives **92.93 ETH**
+**Liquidation (full):**
+- A liquidator burns **85.714 osToken** from their wallet
+- ETH payout = `(85.714 × 1.0735) × 1.01 ≈ 92.93 ETH`, taken from Alice's collateral
 
-**After liquidation:**
-- Alice's minted balance: **0 osETH**
+**After:**
+- Alice's minted balance: **0 osToken** (debt cleared)
 - Alice's remaining collateral: **7.07 ETH**
-- Alice keeps her original **87.629 osETH**
-- **Loss: 1% of collateral** as liquidation penalty
+- Alice's wallet osToken: unchanged
+- Net loss: **~0.92 ETH** — the 1% premium on the liquidated debt, deducted from her collateral
 :::
 
-Positions in **99.99% LTV Vaults** are exempt from liquidation, as their APY parity ensures position health remains stable.
+Positions in **100% LTV Vaults** are exempt: liquidations are disabled at the contract level. The exemption is safe because the exchange rate appreciation is capped at those Vaults' APY, so positions stay solvent by design.
 
-## Exchange Rate Appreciation
+## Burning
 
-osToken is a **repricing token**, meaning its redemption value increases over time as staking rewards accrue.
-Each osToken represents a growing share of the underlying staked ETH or GNO.
+Burning is the process of returning minted osToken to the Vault in exchange for unlocking the staked collateral that backs it.
 
-The **fair exchange rate** is the amount of assets a user can receive when redeeming osToken within the protocol.
-As rewards accrue, the redemption value increases, creating the "repricing" effect where each osETH becomes worth more ETH over time.
+Users can burn any amount: a full burn clears the entire debt, while partial burns reduce debt, improve LTV, and free up a portion of the stake. Protocol fees accrue automatically into the position over time, so a full burn includes the original mint plus accrued fees. The burn amount is calculated at the current protocol exchange rate.
 
-The fair exchange rate is reflected through `convertToAssets` and `convertToShares` functions in the [osTokenVaultController ↗](https://etherscan.io/address/0x2A261e60FB14586B474C208b1B7AC6D0f5000306#code) contract,
-which manages osToken supply, collateral, and reward accrual.
+The full stake can only be withdrawn once the osToken position is fully burned. While any osToken remains minted, the Vault keeps enough ETH locked to back it, so only part of the stake can be unstaked.
 
-## Reward Accrual & Fee Mechanism
+The amount of ETH that can be unstaked at any moment is determined by maintaining the osToken position within its LTV cap. After unstaking, the value of minted osToken must remain at or below:
+
+- **90%** of staked ETH in a **90% LTV Vault**
+- **100%** of staked ETH in a **100% LTV Vault**
+
+The protocol calculates the **maximum unstakable ETH** as:
 
-A decentralized Oracle network uses the [VaultUserLtvTracker ↗](https://etherscan.io/address/0xe0ae8b04922d6e3fa06c2496a94ef2875efcc7bb#code) contract to identify the user with the highest osToken LTV position across all Vaults.
-Oracles then set the `avgRewardPerSecond` parameter to match that user's Vault APY performance.
-This rate drives the continuous calculation of osToken value appreciation:
+:::custom-notes[Formula: 90% LTV]
+$$
+{\small MaxUnstakableETH = StakedETH - \dfrac{osTokenMinted \times ExchangeRate}{0.9}}
+$$
+:::
 
-:::custom-notes[Formula: Profit Accrual]
+:::custom-notes[Formula: 100% LTV]
 $$
-{\small profitAccrued = avgRewardPerSecond \times totalAssets \times timeElapsed}
+{\small MaxUnstakableETH = StakedETH - osTokenMinted \times ExchangeRate}
 $$
 :::
 
-This mechanism ensures that osETH appreciation keeps pace with the least collateralized position in the entire protocol.
-When necessary, Oracles adjust `avgRewardPerSecond` downward to prevent any LTV from exceeding 100% due to insufficient Vault performance.
+:::custom-notes[Example: Bob's 90% LTV Position]
+Bob stakes **100 ETH** and mints **50 osToken** at an exchange rate of **1.05 ETH/osToken**.
 
-From these rewards, the protocol deducts a 5% fee that increases users' osETH debt—the amount they must burn to fully exit their positions.
-This fee creates new tokens for the StakeWise DAO Treasury and increases the osETH balance that users owe back to their Vaults.
-The remaining 95% of rewards increase the backing assets, raising the fair exchange rate for all osToken holders.
+- Value of minted osToken: `50 × 1.05 = 52.5 ETH`
+- LTV: `52.5 ÷ 100 = 52.5%` → safely below **90%**
+- Maximum unstakable ETH: `100 − (52.5 ÷ 0.9) = 41.667 ETH`
 
-:::custom-notes[Example: Fee Impact]
-If you minted **1 osToken** and after fee collection it increases to **1.000001**,
-your debt grows by **0.000001**—your proportional share of the protocol's accumulated fees.
+After unstaking **41.667 ETH**, Bob's LTV = **90%**.
 :::
 
-:::custom-info[Learn More]
-For comprehensive information about all protocol fees, see the [Fees →](../fees/intro) chapter.
+:::custom-notes[Example: Alice's 100% LTV Position]
+Alice stakes **100 ETH** and mints **50 osToken** at the same **1.05** rate.
+
+- Value of minted osToken: `52.5 ETH`
+- LTV: `52.5 ÷ 100 = 52.5%` → well below **100%**
+- Maximum unstakable ETH: `100 − 52.5 = 47.5 ETH`
+
+After unstaking **47.5 ETH**, Alice's LTV = **100%**.
 :::
+
+When a user exits a Vault while still holding osToken debt, the Vault may not have liquid ETH immediately available, since validators must go through the Ethereum exit queue. An escrow contract holds the osToken position alongside the underlying stake until ETH is freed, then unwinds both in lockstep. This keeps every osToken fully backed throughout the exit process.
+
+<div id="fn-1" style={{fontSize: '0.85em', color: 'var(--ifm-color-content-secondary)', marginTop: '2rem', listStyle: 'none', fontFamily: 'Fragment Mono, ui-monospace, SFMono-Regular, Menlo, Monaco, Consolas, Liberation Mono, Courier New, monospace'}}>
+  <span>1.</span> DAO-approved Vault requirements: minimum 10,000 ETH staked, maximum 5% Vault fee, consistently above-median network performance, latest Vault version deployed, and 5M SWISE tokens locked as slashing insurance. <a href="#fnref-1" style={{color: 'var(--ifm-color-content-secondary)', textDecoration: 'none'}}>↩</a>
+</div>
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diff --git a/docs/docs/ostoken/intro.mdx b/docs/docs/ostoken/intro.mdx
index e3b5c901..5c8d93e2 100644
--- a/docs/docs/ostoken/intro.mdx
+++ b/docs/docs/ostoken/intro.mdx
@@ -1,21 +1,19 @@
 ---
 title: osToken
-description: Learn what osToken is and how to get it
+description: osToken is StakeWise's liquid, overcollateralized staking token on Ethereum and Gnosis.
 ---
 
 import Image from '@theme/IdealImage'
 
 # osToken
 
-osToken is a liquid staking token that accrues staking rewards when held. It is a generic name for StakeWise's network-specific ERC-20 tokens:
+ETH and GNO staked in a Vault earn rewards, but the stake itself is a non-transferable share of the Vault's staking pool. osToken turns that stake into a transferable asset that can be [used across DeFi ↗](https://app.stakewise.io/ecosystem) to earn additional rewards.
+
+osToken is the generic name for StakeWise's network-specific liquid staking ERC-20 tokens:
 
 - **osETH** on Ethereum
 - **osGNO** on Gnosis Chain
 
-<Image img={require('./img/osToken_intro.png')} alt="osToken overview - liquid staking token for StakeWise" />
-
-osToken is issued against assets staked in a Vault to allow using staked capital in decentralized applications to trade, borrow, lend, and restake. Hence, osTokens represent the underlying staked assets and the rewards earned.
+osToken is overcollateralized: more ETH or GNO is always staked than the osToken issued against it. As a repricing token, osToken accrues staking rewards by appreciating against the underlying asset, rather than increasing the token balance in the user's wallet.
 
-Short for **Overcollateralized Staked Token**, osToken requires that the value of staked assets exceed the value of osToken issued. This overcollateralization acts as a safety buffer, protecting holders and the protocol from validator penalties or underperformance of permissionless Vaults.
-
-A defining feature is that osToken can be minted against validators run by anyone – from solo stakers to professional operators – making access to liquid staking fully permissionless and non-custodial.
+<Image img={require('./img/osToken_intro.png')} alt="osToken overview - liquid staking token for StakeWise" />
diff --git a/docs/docs/ostoken/ostoken-redemptions.mdx b/docs/docs/ostoken/ostoken-redemptions.mdx
new file mode 100644
index 00000000..e2bc881d
--- /dev/null
+++ b/docs/docs/ostoken/ostoken-redemptions.mdx
@@ -0,0 +1,92 @@
+---
+title: osToken Redemptions
+description: How osToken redemptions work under the hood.
+---
+
+import Image from '@theme/IdealImage';
+
+# osToken Redemptions
+
+Redemptions are an in-protocol peg-maintenance mechanism that converts osToken back to ETH or GNO at the protocol [exchange rate](/docs/ostoken/how-ostoken-works#exchange-rate).
+
+Every osToken is minted against Vault collateral (the user's stake in the Vault) and must remain backed by that collateral. The minter takes on a corresponding debt against their Vault collateral and can burn the osToken at any time to repay the debt and withdraw their stake.
+
+If the minter transfers the osToken away, the minter's on-chain debt in the Vault is unchanged. From the protocol's perspective: the minter owes `X` osToken worth of debt, but only `Y < X` is still in their hands. The delta `X − Y` is what the protocol calls **redeemable** — osToken that exists somewhere but is no longer tied to the minter.
+
+Redemption burns the missing portion of the minter's debt against their collateral and releases the corresponding ETH/GNO at the protocol exchange rate.
+
+## How Redemptions Work
+
+<Image img={require('./img/redemptions.png')} alt="osToken redemption flow between the Operator Service and the OsTokenRedeemer contract" />
+
+The redemption flow is coordinated between three actors: the [Operator Service ↗](https://github.com/stakewise/v3-operator), which computes who can be redeemed and by how much; StakeWise, which authorizes positions on-chain and supplies the osToken to redeem; and the [OsTokenRedeemer ↗](https://etherscan.io/address/0xc43A7b16A7a167c0318390Cba16787C11e9e1FD0) contract, which executes redemptions.
+
+The flow draws on two independent tracks that converge once both are ready: the Operator Service publishes the list of redeemable positions (Step 1), while StakeWise buys and queues osToken whenever it trades below peg (Step 2). The remaining steps consume both. In full, it runs in seven steps:
+
+### 1. Operator Service Computes the Redeemable Positions
+
+The Operator Service uploads the list of eligible positions to [IPFS ↗](https://ipfs.stakewise.io/ipfs/bafkreihbwhyaqskcczhuanu2nbdgdlfbwfwgbirue6kvlw4nrc5d2snqxa) and builds a Merkle tree that commits to each entry. StakeWise then submits the root and IPFS hash on-chain to authorize the listed positions for redemption.
+
+:::custom-notes[Under the Hood]
+The Operator Service computes the redeemable positions in five steps:
+
+1. Pin the snapshot to a finalized block so all the following steps read the same on-chain state.
+2. Fetch all allocators (addresses that have minted osToken) from the subgraph.
+3. Skip [Boost](/docs/vaults/boost) positions. Each Boost leverage position has its own proxy contract that holds the osToken on the user's behalf, so those proxy addresses are removed from the minters list, and each user's leveraged shares are subtracted from their balance to avoid double-counting.
+4. Compute `kept` shares — osToken in trackable locations: mainnet, Arbitrum, and DeFi protocols indexed by DeBank or Rabby. Anything else is treated as missing.
+5. Compute `redeemable = minted − kept`, split it across the user's Vaults proportionally to where they minted, and sort by LTV descending then amount descending so the riskiest positions are drawn down first.
+:::
+
+### 2. osToken Enters the Queue
+
+When osToken trades below the protocol exchange rate, StakeWise buys it on the secondary market and sends it to the `OsTokenRedeemer`, entering the queue. A ticket is issued — a unique cumulative index recording the entry's place in the queue and how much is owed — carrying the right to claim ETH/GNO later.
+
+### 3. Operator Service Prepares the Next Redemption
+
+The Operator Service monitors the on-chain state. If a previous redemption round has redeemed ETH/GNO that is waiting to be checkpointed, it first calls `processExitQueue` to finalize that batch so the assets become claimable.
+
+It then checks whether there's enough queued osToken to submit a new redemption.
+
+### 4. Operator Service Submits a Redemption
+
+The Operator Service downloads the published list from IPFS, picks a batch of eligible positions, and decides how much to redeem from each. If a target Vault is a MetaVault without enough liquidity on hand, the Operator Service first pulls assets up from Sub-vaults via a separate `redeemSubVaultsAssets` transaction. It then builds a Merkle multiproof against the published root and submits a multicall to `OsTokenRedeemer` that refreshes Vault state and calls `redeemOsTokenPositions`.
+
+The redemption is now in flight; verification and execution happen on-chain.
+
+### 5. OsTokenRedeemer Executes the Redemption
+
+The contract rebuilds each leaf, verifies the Merkle multiproof against the stored root, and caps the amount independently per position. For each verified position, it calls the Vault's `redeemOsToken` to burn the minter's osToken debt and send the equivalent ETH/GNO (using the Vault's just-updated state) to the redeemer.
+
+The queued shares are now matched against missing positions — settled, but not yet claimable.
+
+### 6. Batch Is Checkpointed
+
+Once the configured delay has elapsed, `processExitQueue` is called and the contract creates a new checkpoint that matches the redeemed shares to their ETH/GNO and marks the assets as claimable. Tickets that fall within this checkpoint can now be claimed.
+
+::::custom-notes[Dive Deeper: The Exit Queue and Checkpoints]
+
+**The queue**
+
+:::note
+This is the `OsTokenRedeemer`'s own exit queue, independent of the Vault exit queue.
+:::
+
+When osToken enters the queue, the assets aren't released right away. The contract tracks this line with a single number, the `positionTicket`:
+
+`positionTicket = (all previously processed shares) + (shares already queued ahead)`
+
+The queue clears as the contract processes redemptions, moving shares from *queued* to *redeemed*. Redeemed shares are matched with ETH/GNO but can't be claimed yet — that requires a checkpoint.
+
+**Checkpoints**
+
+A checkpoint is a snapshot that says: *"at this point in the queue, this many shares were exchanged for this many assets."* When a ticket is claimed, the checkpoint covering it tells the contract:
+
+- how many tickets it now covers (marked exited),
+- and how many assets those tickets are worth, at the rate the checkpoint locked in.
+
+If only some of the ticket is covered and the rest is still queued, the contract pays out the covered portion and rolls the remainder into a new exit request at the next ticket. The rest can be claimed after the next checkpoint.
+::::
+
+### 7. ETH/GNO Is Claimed
+
+`claimExitedAssets` is called with the ticket and the matching checkpoint index. The contract pays out the corresponding ETH/GNO; if the ticket spans more than one checkpoint, a residual is left for future rounds.
diff --git a/docs/docs/stakewise-protocol/what-is-stakewise.mdx b/docs/docs/stakewise-protocol/what-is-stakewise.mdx
index 6dfce22e..3f638b2a 100644
--- a/docs/docs/stakewise-protocol/what-is-stakewise.mdx
+++ b/docs/docs/stakewise-protocol/what-is-stakewise.mdx
@@ -66,7 +66,7 @@ The decentralized Oracle network connects StakeWise smart contracts to Ethereum'
 
 - **Validator Lifecycle**: Manages validator registration, consolidations, rewards, penalties, and exits.
 
-- **Token Stability**: Maintains accurate osToken exchange rates and safeguards peg stability. [Learn more →](../ostoken/how-ostoken-works#reward-accrual--fee-mechanism)
+- **Token Stability**: Maintains accurate osToken exchange rates and safeguards peg stability. [Learn more →](../ostoken/how-ostoken-works#exchange-rate)
 
 :::custom-notes[Deep Dive]
 Learn more about [Oracles →](../oracles/intro)
diff --git a/docs/docs/vaults/how-vaults-work.mdx b/docs/docs/vaults/how-vaults-work.mdx
index 778e71c7..eb5c2e20 100644
--- a/docs/docs/vaults/how-vaults-work.mdx
+++ b/docs/docs/vaults/how-vaults-work.mdx
@@ -118,7 +118,7 @@ Once a validator fully exits, its balance is [swept ↗](https://ethereum.org/en
 
 osTokens (`osETH` or `osGNO`) are ERC-20 tokens that users can mint from any Vault using their shares as backing (aka collateral), providing liquidity without unstaking. osToken can be traded or used in DeFi while the underlying stake continues earning rewards.
 
-The system keeps more staked assets backing each osToken than the token is worth. This safety buffer protects users and keeps the system stable. The Vault's Loan-to-Value ratio determines how much users can mint — this ranges from standard ratios around 90% up to 99.99% for DAO-approved Vaults<sup><a href="#fn-6" id="fnref-6">6</a></sup>.
+For all Vaults other than DAO-approved Vaults with 100% LTV enabled, the system maintains more staked assets backing each osToken than the token is worth. This safety buffer protects users and helps keep the system stable. A Vault’s loan-to-value (LTV) ratio determines how much users can mint, ranging from the standard ratio of 90% to 100% for DAO-approved Vaults.<sup><a href="#fn-6" id="fnref-6">6</a></sup>
 
 :::custom-notes[Deep Dive]
 For more details on how osToken works, see [osToken →](../ostoken/intro).
diff --git a/operator/start-operator.mdx b/operator/start-operator.mdx
index 690aa072..59a5abd7 100644
--- a/operator/start-operator.mdx
+++ b/operator/start-operator.mdx
@@ -10,7 +10,7 @@ import { CheckItem } from '@site/src/components';
 
 # Start Operator
 
-## Setup Checklist <img src="/icons/stakewise/tick.png" alt="tick" style={{width: '36px', height: '36px', verticalAlign: 'middle', display: 'inline'}} />
+## Setup Checklist <img src="/icons/sw_rocket.gif" alt="rocket" style={{width: '36px', height: '36px', display: 'inline', verticalAlign: 'middle'}} />
 
 Before starting the Operator Service, confirm that everything is in place:
 
diff --git a/sidebars.ts b/sidebars.ts
index 34fb016a..212beb7b 100644
--- a/sidebars.ts
+++ b/sidebars.ts
@@ -42,6 +42,7 @@ const sidebars: SidebarsConfig = {
       },
       items: [
         'docs/ostoken/how-ostoken-works',
+        'docs/ostoken/ostoken-redemptions',
       ],
     },
     {
diff --git a/staker/risks.mdx b/staker/risks.mdx
index 89b06bbe..151976ca 100644
--- a/staker/risks.mdx
+++ b/staker/risks.mdx
@@ -19,7 +19,7 @@ All DeFi protocols carry smart contract risk. StakeWise runs on battle-tested, [
 
 ## osETH Depeg
 
-osETH could temporarily trade below its fair value on secondary markets. The protocol's [redemption and liquidation mechanisms](/docs/ostoken/how-ostoken-works#peg-maintenance) create arbitrage incentives that keep the market price aligned with the underlying value.
+osETH could temporarily trade below its fair value on secondary markets. The protocol's [redemption mechanism](/docs/ostoken/ostoken-redemptions) keeps the market price tightly tethered to the protocol exchange rate by buying discounted osETH and redeeming it for ETH (or minting and selling fresh osETH when it trades at a premium).
 
 ## Boost
 
diff --git a/staker/vault-staking.mdx b/staker/vault-staking.mdx
index ed5ff225..9300d2aa 100644
--- a/staker/vault-staking.mdx
+++ b/staker/vault-staking.mdx
@@ -28,8 +28,10 @@ Pick a Vault that matches your preferences and start staking in just a few steps
 
 Your stake starts earning rewards as soon as the Vault's validators are active.
 
+osETH can only be minted in Vaults that are **collateralized** (have active validators) and **harvested** (rewards synced via the Keeper).
+
 :::custom-info[Position Health]
-If you mint osETH, your position gets a [health score](/docs/ostoken/how-ostoken-works#position-health) based on how much osETH you've minted relative to your staked ETH (the <Tooltip content="The ratio of minted osETH value to your staked ETH. The higher the LTV, the closer your position is to redemption or liquidation.">Loan-to-Value ratio</Tooltip>). There are four health levels — healthy, moderate, risky, and unhealthy. If your position becomes unhealthy, it may be subject to [redemption or liquidation](/docs/ostoken/how-ostoken-works#peg-maintenance). You can improve it anytime by burning osETH or adding more stake.
+If you mint osETH, your position gets a [health score](/docs/ostoken/how-ostoken-works#ltv-ratio) based on how much osETH you've minted relative to your staked ETH (the <Tooltip content="The ratio of minted osETH value to your staked ETH. The higher the LTV, the closer your position is to redemption or liquidation.">Loan-to-Value ratio</Tooltip>). There are four health levels — healthy, moderate, risky, and unhealthy. A risky position is subject to [redemption](/docs/ostoken/how-ostoken-works#redemption), while an unhealthy one is subject to [liquidation](/docs/ostoken/how-ostoken-works#liquidation). You can improve it anytime by burning osETH or adding more stake.
 
 Position health depends on the APY of osETH relative to the Vault APY. The larger the gap (Vault APY < osETH APY), the worse the position health can get. If the Vault is running normally with close to the average APY across all Vaults, it's very unlikely that the position will drop below healthy.
 :::
diff --git a/static/icons/sw_rocket.gif b/static/icons/sw_rocket.gif
new file mode 100644
index 00000000..22451ea0
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