How vaults work

You deposit USDC and receive shares in Senior or Junior. The vault's manager defines the strategy. An executor submits transactions that move assets into approved investments. The Solana program checks each action against the vault's permissions and limits. As the investments gain or lose value, the program allocates that result between Senior and Junior, changing what each share is worth.

1. You deposit USDCCopy Anchor Link

You choose a vault, a tranche and an amount. Your wallet signs a transaction. If the transaction succeeds, USDC enters the vault and you receive that tranche’s share token.

The program first accounts for the vault’s current result and checks the deposit conditions. Limits can refuse a deposit even when you have enough USDC. This protects existing participants from transactions that would breach the vault’s rules.

2. The strategy holds positionsCopy Anchor Link

Some USDC can remain available in the vault as idle cash. Other assets are placed into approved protocols or held as token positions. A connector called an adapter tells the vault how to interact with and value a particular type of position.

The executor chooses actions inside the configured boundaries. The contract checks things such as position caps, allowed accounts and acceptable execution losses. The executor’s existence does not give it unrestricted authority over your wallet or the vault.

3. The value changesCopy Anchor Link

The vault values its positions and records their result in the tranche accounts. Recording a result is also called booking it. A positive net result is split using the tranche rules. A negative result reduces Junior first, then Senior if necessary.

Position value is not the same as immediately available USDC. A position can have a recorded value while its exit is delayed or lacks liquidity. This distinction matters when you withdraw.

4. You request an exitCopy Anchor Link

A withdrawal has separate request, funding and claim stages. Your shares are held for the request and remain exposed to the tranche’s result until funded. At funding, shares are priced and the corresponding USDC is reserved. You then claim that funded USDC.

1. 1RequestYou sign. Shares are held for your exit and still gain or lose value.
2. 2WaitThe notice ends. Cash, coverage and other funding conditions must also allow an exit.
3. 3FundThe allowed shares are converted into reserved USDC. A remainder can wait.
4. 4ClaimReserved USDC reaches your wallet. Complete can combine funding and claim.

A notice period becoming complete does not itself create cash. Funding can be partial or wait for liquidity and the vault’s conditions. Read the withdrawal guide.

Keep three measurements separateCopy Anchor Link

What the vault holds explains the investment exposure. What your shares are worth explains your participation in its current value. What is ready to claim is USDC already reserved for your withdrawal. The three can change at different times.

Continue with Senior and Junior for the allocation examples, or NAV and share pricing for the detailed accounting.