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Deposit flow

1

Approve USDC

Approve the USDC transfer from your wallet.
2

Shares minted at NAV

The contract converts your USDC to vault shares at the current NAV. Shares are minted to your wallet.
3

Capital routed

USDC is routed via the multi-sig operator wallet to the manager’s Bybit sub-account.
4

Manager trades

Trading proceeds under the vault’s policy constraints. If the vault has open positions, dynamic rebalancing keeps everyone at the intended leverage.

Withdrawal flow

1

Submit request

A ~48h timelock begins (1h on devnet).
2

Lockup check

If the manager set a lockup period (up to 30 days), your initial deposit window must clear first.
3

Settlement

After timelock + lockup, the operator unwinds positions on Bybit (or sweeps free balance if it covers your request).
4

NAV & fee

NAV is recalculated from the oracle. The HWM-protected performance fee crystallizes against your per-LP cost basis.
5

Shares burned, USDC returned

Your shares are burned and USDC is transferred to your wallet. Remaining LPs are kept at unchanged leverage via rebalancing.

Configurable parameters

Set by the manager at vault creation, visible to you upfront:
ParameterDefaultUp to
Min LP deposit$100$50,000
Lockup periodNone30 days
Cooldown before withdrawalOptional 7 daysConfigurable
Weekly redemption cap20% of AUMConfigurable
Early-exit penalty (during lockup)2% to insurance fund0% = no early exit allowed

Withdrawal queue mechanics

  • FIFO — requests are processed in the order received.
  • Weekly cap — if total requests in a 7-day window exceed 20% of AUM, the excess rolls to the following week.
  • Early exit during lockup — exit with a 2% penalty (to the insurance fund) instead of waiting.
  • Failsafe — if an unwind fails (illiquid market), the vault enters managed-wind-down mode, the admin is alerted, and withdrawals queue until resolved.

Why position sizes rebalance

When capital enters or exits, position sizes must scale proportionally so existing LPs aren’t exposed to changed leverage.
The leverage drift problem. If a manager trades 400Knotionalon400K notional on 1M AUM (0.4× exposure) and an LP withdraws 500K,thesame500K, the same 400K position now sits on $500K AUM — that’s 0.8×, double the leverage remaining LPs signed up for. This is a system error, not a feature.
Positions rebalance atomically with capital changes. The manager picks the mode at vault creation:
ModeBehaviorBest for
Auto-immediate (default)Rebalance instantly on every entry/exitTight risk control, short-horizon
Scheduled 4hAggregate and rebalance every 4 hoursSwing strategies
Scheduled 24hRebalance dailyLong-horizon, low-frequency

Performance fees & the HWM

How fees are calculated and why you’re never charged twice on the same gain.