The Unstaking Queue governs how positions are exited from Bandits.Fun. When a holder requests to unstake, their $GOLD and USDT are placed into the queue for a fixed period, with penalties applied based on the chosen exit time. Exiting after 24 hours incurs no penalty; faster exits (18h, 12h, 6h, 1h) apply increasing deductions to both $GOLD and USDT, with percentages defined by protocol parameters. While in the queue, all positions remain subject to the 10% collateral requirement and can be liquidated if this threshold is not maintained. This mechanism prevents instant withdrawals, discourages opportunistic dumping, and ensures stability in redistribution cycles.

Unstaking Queue — Step-by-Step

1) Entering the Queue

1. A bandit chooses how long they are willing to wait before exiting (Proceeds from penalties follow the same routing structure as Liquidations - see Section 3 in Liquidations). The available options are:
   • 24 hours → 0% penalty
   • 18 hours → 10% penalty
   • 12 hours → 20% penalty
   • 6 hours → 30% penalty
   • 1 hour → 50% penalty
2. There is no immediate unlock option. Every exit must go through one of the defined time tiers.
3. While in the queue (the amount which is in the queue), bandits are not eligible to receive redistributions from raids.

2) While Waiting in the Queue

1. The 10% collateral requirement remains in force at all times. Collateral must always equal at least 10% of the USD value of $GOLD, as measured by a 15-minute TWAP oracle.
2. If a raid redistributes $GOLD to a bandit while they are in the queue (for if they have GOLD outside of the queue), their $GOLD balance rises and their collateral requirement increases accordingly.
3. A bandit can add USDT collateral at any time while waiting to stay compliant.
4. If at any point the collateral requirement is not met, the bandit is immediately liquidated, and their exit is cancelled.

3) Exit Execution

1. When the waiting period expires, the protocol applies the penalty for the chosen tier (0%, 10%, 20%, 30%, or 50%). Penalties apply to both $GOLD and USDT.
2. The remaining $GOLD is automatically sold into the market via a 15-minute TWAP, to minimize price impact and slippage.
3. The collateral requirement continues to apply until the TWAP is fully complete. If the bandit falls under the 10% requirement during execution, the exit is terminated, and the position is liquidated.

4) Completion and Settlement

1. Settlement of assets are returned on a continuous basis, not strictly after the 15 minute TWAP concludes:
   • The USDT proceeds from the $GOLD sale, minus penalties, are continuously released to the bandit’s wallet.