> For the complete documentation index, see [llms.txt](https://docs.afx.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.afx.xyz/vaults.md).

# Vaults

AFX Vaults allow users to participate in the platform's liquidity and trading strategies. There are two types of Vaults: the **LP Vault (ALP)**, which is the platform's core liquidity vault, and **User Vaults**, which are community-created strategy vaults.

## Vault Types

### LP Vault (ALP)

The LP Vault is the protocol-level vault that provides liquidity to the AFX exchange. It handles market making, liquidation takeovers, and earns fees from platform trading activity. There is no management fee (Operator Fee = 0%). Any user can deposit USDC into the LP Vault to share in its returns.

See [LP Vault (ALP)](/vaults/lp-vault.md) for details.

### User Vaults

User Vaults are created by individual traders who want to manage funds on behalf of depositors. Vault creators (leaders) execute trading strategies using the pooled funds and earn a **10% profit share** on depositors' gains. Availability and creation requirements may vary by rollout stage and account eligibility.

## Key Concepts

### NAV (Net Asset Value per Share)

All Vaults use a share-based (NAV) accounting system:

* When you deposit, you receive shares at the current NAV price.
* As the Vault's total assets grow (through trading profits), the NAV increases.
* When you withdraw, your shares are redeemed at the current NAV.

This ensures that each depositor's return corresponds to the actual performance during their holding period.

### Vault Isolation

Each Vault operates with a separate trading account, completely isolated from the creator's personal trading account and from other Vaults. Depositing into or trading within a Vault does not affect any other accounts.

## Roles

| Role                     | Permissions                                                                                                 |
| ------------------------ | ----------------------------------------------------------------------------------------------------------- |
| **Depositor**            | Deposit USDC, withdraw USDC, view Vault performance and positions.                                          |
| **Vault Leader**         | All depositor permissions, plus: execute trades, manage positions, adjust risk parameters, close the Vault. |
| **Vault Smart Contract** | Holds deposited assets, mints/burns shares, calculates NAV, distributes profits.                            |


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