1. What is a GRVT Vault?
A GRVT Vault is an on-chain trading account managed by a strategy provider. Users can invest USDT into a vault and receive shares that represent their ownership. The vault manager trades with pooled funds, and performance is reflected in the share price.
2. How do I invest in a vault?
You can invest through your GRVT Funding Account. Choose a vault, enter the amount of USDT, and confirm the transaction. You will receive shares equal to your investment divided by the current share price.
3. What are vault shares?
A: Shares represent your proportional ownership of a vault’s assets. Their value increases or decreases based on the performance of the vault. When you redeem, the value of your shares determines the amount of USDT you receive.
4. How is vault performance calculated?
A: Vault performance is shown via the share price, which reflects the vault’s total equity divided by the number of outstanding shares. Additional metrics such as ROI, APR, drawdown, and Sharpe ratio are also available.
5. How do redemptions work?
A: Redemption requests can be submitted at any time but are only added to the processing queue after the minimum redemption period passes. Once eligible, they are serviced based on a priority queue logic.
6. What is the redemption queue?
A: GRVT uses a hybrid queue: primarily FIFO (first-in, first-out), but smaller redemption requests can jump ahead if they are significantly smaller than the current first item. This ensures fairness and minimizes price impact.
7. What is the auto redemption barrier?
A: If a vault’s total equity exceeds a defined multiple of its initial margin (e.g., 1.2x), redemptions are automatically serviced without needing the manager’s intervention. This is called the auto redemption barrier.
8. What is forced redemption?
A: If a redemption request is not processed before the maximum redemption period ends, GRVT will force the redemption to ensure investors are not locked out indefinitely.
9. How are fees structured?
A: Vault managers can configure:
Management Fee: Charged daily, based on total equity.
Performance Fee: Charged on profits upon redemption.
Marketing Fee: A share of fees paid to GRVT if marketing support is used.
10. What are the risks of investing in a vault?
A: Yes. As vaults are exposed to trading risk, share prices can decrease. Additionally, during the redemption period, investors share in any losses but are excluded from gains, which reduces risk of fee avoidance.
11. Who can create a vault?
A: Yes. Anyone can create a vault if they meet the minimum investment requirement:
Prime Vaults: At least $10,000 invested by the manager.
Launchpad Vaults: At least $100 invested by the manager.
12. Can vault settings be changed?
A: Some fields can be updated (e.g., redemption periods, valuation caps), while others (like management fees) can only be adjusted in a specific direction (e.g., fees reduced, not increased).
13. What are reward points and how are they shared?
A: Vaults earn reward points based on activity. The reward sharing ratio determines what portion goes to investors vs the manager. For example, if sharing is 60%, and the manager owns 10% of shares, they receive 46% of rewards. For example, let’s say:
Reward Sharing Ratio = 60% (investors get 60% of all points)
Vault Manager Ownership = 10% of all shares in the vault
Here’s how rewards are split:
Manager’s direct share:
40% of total rewards (100% - 60%) goes to the manager upfront.
Investor share (60%):
This is divided among all share-holders. Since the manager owns 10% of shares, they also get 10% of this 60%, which is 6%.
Total manager rewards:
40% (direct) + 6% (from investor pool) = 46% of total reward points
Total investor rewards (excluding manager):
60% × 90% = 54%, distributed among other investors based on their shareholdings.
The rewards that are shared are Trader points (trade to earn) and LP points (quote to earn) points.