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) 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
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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