Vaults
A vault is a pooled USDC account that trades a strategy and shares the result with its depositors. TxFlow has two kinds: the Protocol Vault, run by the protocol, and User Vaults, run by individual traders.
Protocol Vault
The Protocol Vault is run by the TxFlow protocol. It provides liquidity on the TxFlow order book and takes over liquidated positions. Returns come from market making and liquidations.
Positions the vault holds, including liquidated positions it takes over, move with the market. The vault's value can fall during volatile markets. Its risk is relatively lower than most user vaults, but not zero.
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Profit share and fees: none.
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Lock-up: 4 days from your most recent deposit. Each new deposit restarts the lock-up for your entire balance.
Example: you deposit on Oct 10 at 10:00 UTC, so your balance is withdrawable from Oct 14 at 10:00 UTC. If you deposit again on Oct 12 at 08:00 UTC, your entire balance becomes withdrawable from Oct 16 at 08:00 UTC.
User Vaults
User Vaults are created and managed by individual traders (leaders). Depositors share in the vault's trading profits and losses:
- Profit share: the leader receives 10% of your profits.
- Lock-up: 1 day from your most recent deposit. Each new deposit restarts it for your entire balance.
Protocol Vault vs. User Vaults
| Protocol Vault | User Vaults | |
|---|---|---|
| Operator | TxFlow protocol | individual traders (leaders) |
| Strategy | market making and taking over liquidated positions | set by the leader |
| Returns from | market making and liquidations | the vault's trading profits and losses |
| Profit share | none | 10% of your profits to the leader |
| Lock-up | 4 days from your most recent deposit | 1 day from your most recent deposit |
| Risk | lower than most user vaults, but not zero | varies with the leader's strategy |
Deposits and withdrawals
Deposits move USDC from your Perp account. You can deposit up to your transferable balance, which is the amount you can move without affecting the initial margin of open positions. Funds in a vault no longer count as margin.
Withdrawals go back to your Perp account. The amount you receive is set when the withdrawal completes, based on the vault's value at that time. For User Vaults, it is after the leader's profit share.
Large withdrawals may be processed in part. The rest stays in the vault, and you can withdraw it again.
APR
APR is annualized from the vault's performance over the past month. Past performance does not guarantee future results.