> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hyro.network/llms.txt
> Use this file to discover all available pages before exploring further.

# Deposits & Withdrawals

> Exactly how capital enters and exits a vault, step by step.

## Deposit flow

<Steps>
  <Step title="Approve USDC">
    Approve the USDC transfer from your wallet.
  </Step>

  <Step title="Shares minted at NAV">
    The contract converts your USDC to vault shares at the current NAV. Shares are minted to your wallet.
  </Step>

  <Step title="Capital routed">
    USDC is routed via the multi-sig operator wallet to the manager's Bybit sub-account.
  </Step>

  <Step title="Manager trades">
    Trading proceeds under the vault's policy constraints. If the vault has open positions, dynamic rebalancing keeps everyone at the intended leverage.
  </Step>
</Steps>

## Withdrawal flow

<Steps>
  <Step title="Submit request">
    A \~48h timelock begins (1h on devnet).
  </Step>

  <Step title="Lockup check">
    If the manager set a lockup period (up to 30 days), your initial deposit window must clear first.
  </Step>

  <Step title="Settlement">
    After timelock + lockup, the operator unwinds positions on Bybit (or sweeps free balance if it covers your request).
  </Step>

  <Step title="NAV & fee">
    NAV is recalculated from the oracle. The HWM-protected performance fee crystallizes against your per-LP cost basis.
  </Step>

  <Step title="Shares burned, USDC returned">
    Your shares are burned and USDC is transferred to your wallet. Remaining LPs are kept at unchanged leverage via rebalancing.
  </Step>
</Steps>

## Configurable parameters

Set by the manager at vault creation, visible to you upfront:

| Parameter                          | Default              | Up to                      |
| ---------------------------------- | -------------------- | -------------------------- |
| Min LP deposit                     | \$100                | \$50,000                   |
| Lockup period                      | None                 | 30 days                    |
| Cooldown before withdrawal         | Optional 7 days      | Configurable               |
| Weekly redemption cap              | 20% of AUM           | Configurable               |
| Early-exit penalty (during lockup) | 2% to insurance fund | 0% = 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.

<Warning>
  **The leverage drift problem.** If a manager trades $400K notional on $1M AUM (0.4× exposure) and an LP withdraws $500K, 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.
</Warning>

Positions rebalance atomically with capital changes. The manager picks the mode at vault creation:

| Mode                     | Behavior                                | Best for                          |
| ------------------------ | --------------------------------------- | --------------------------------- |
| Auto-immediate (default) | Rebalance instantly on every entry/exit | Tight risk control, short-horizon |
| Scheduled 4h             | Aggregate and rebalance every 4 hours   | Swing strategies                  |
| Scheduled 24h            | Rebalance daily                         | Long-horizon, low-frequency       |

<Card title="Performance fees & the HWM" icon="percent" href="/lps/performance-fees" horizontal>
  How fees are calculated and why you're never charged twice on the same gain.
</Card>