Vaults

Two vault types. A main vault for general liquidations and asset manager vaults with first loss capital for tighter pricing.

Main Vault

Pure LP capital. No first loss. Buys at CVaR 97.5 across all listed assets.

Covers every listed asset at the widest discount. No first loss tranche, so LP capital is on the line. The discount has to be deep enough to cover tail events.

Who deposits: Anyone looking for yield from base returns plus liquidation spreads. No asset specific risk preference needed.

Asset Manager Vaults

The asset manager puts their own money in first. If the vault takes a loss, the manager eats it before LP capital gets touched. That protection lets the vault bid tighter (CVaR 90-95 instead of 97.5).

Why managers participate: They control how their holders exit. No fire sales, no panicked redemptions. And they earn the spread on capital they would have been sitting on anyway.

Why depositors participate: The manager loses money before you do. Your capital only takes a hit after the first loss tranche is gone.

Yield

Base yield. Idle USDC earns 3 to 4% in tokenized treasuries.

Liquidation yield. The spread between what the vault paid and what the issuer pays back. Varies by vault and asset. Wider discount means more profit per trade but fewer sellers willing to take the hit.

Risk

NAV impairment. If the fund loses money and NAV drops below what the vault paid, the vault takes a loss. The discount is sized to make this unlikely, but it can happen.

Withdrawal delays. If the vault is heavily deployed into purchased tokens waiting for redemption, withdrawals depend on token liquidation timing.

Fees

No deposit fee. 0.10% withdrawal fee. 10% performance fee on realized profit only. All fees stay inside the protocol and flow back to vault depositors and protocol reserves. Nothing is extracted.