> For the complete documentation index, see [llms.txt](https://docs.theangel.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.theangel.app/how-it-works-investors/liquidity-events.md).

# Liquidity Events

## Phase 5 — Liquidity Windows

This is the most compelling aspect of TheAngel for investors.

Instead of waiting 7–12 years for an exit, investors can adjust their portfolio every quarter.

### How Liquidity Works

#### 1. Quarterly Updates Published

Founders submit operational and financial updates.

#### 2. Automated Valuation Model (AVM) Updates Price

TheAngel calculates a fair market range based on:

* KPIs
* Growth rate
* Market benchmarks
* Comparable deals

#### 3. Liquidity Window Opens

Investors may:

* Sell tokens
* Buy additional tokens
* Rebalance their portfolio

#### 4. Trades Settle Instantly

Tokens and funds move peer-to-peer or via automated clearing.

***

### Liquidity Window Advantages

#### For Investors

* Optional early exit
* Portfolio rebalancing
* Opportunity to buy discounted deals
* Reward for backing strong performers

#### For Founders

* High token demand increases valuation
* More investors become interested in future rounds
* Improved investor relations via transparency