If your Trove is redeemed against, you do not incur a net loss. A redemption is the process of exchanging XIM for $WETH at face value, as if 1 XIM is exactly worth $1. That is, for x XIM you get x dollars worth of $WETH in return. However, you will lose some of your $WETH exposure. Your Trove's collateral ratio will also improve after a redemption. The Trove will be closed due to redemption if the debt left after redemption is less than
200 XIM (Ethereum), in which case the Liquidation Reserve will be used to cancel the debt.