If your Trove is redeemed against, you do not incur a net loss. A redemption is the process of exchanging xUSD for $MATIC at face value, as if 1 xUSD is exactly worth $1. That is, for x xUSD you get x dollars worth of $MATIC in return. However, you will lose some of your $MATIC 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 50 xUSD (polygon) or 20 xUSD (avalanche) or 50 xUSD (Arbitrum), in which case the Liquidation Reserve will be used to cancel the debt.