Vaults FAQ
How Do I Deposit Into Vaults?
To deposit, follow the detailed guide here - How-To-Use Guide
What Is The Minimum Deposit For Vaults?
Each vault has different minimum deposit requirements. For more information on each one, open the respective vault you are interested - Here
Can Someone Else Withdraw Funds From The Vault Except Me?
No!
Utilizing Drift vault architecture, Neutral Trade or anyone else do not retain permissions to withdraw any assets. Only depositors have permissions to enact a withdrawal. Neutral Trade is solely authorized to place or cancel orders within the vault’s own account. Users retain full custody of their assets!
Are The Vaults Audited?
Neutral Trade uses Drift Vaults, which have been audited. On a side note, funds are stored in Drift, which has also been thoroughly audited by three companies.
https://www.drift.trade/connect-by-drift-security-audit-by-ottersec
When Are Fees Charged?
Fees are charged monthly or when you withdraw from the vault. Each Vault issues different fee structures. To find out more info, click the link - Here
Keep in mind: Performance fees are only taken on your profits, while management fees refer to your total position.
Are there any lockups?
Each vault has a lockup period, varying from 1 hour to 7 days. This is done to prevent manipulation and leave time to close vault positions optimally. To find out more info, click the link - Here
Can We Get Liquidated In the JLP DN Vault?
Liquidations are not a concern for several reasons. First, we hedge our JLP delta exposure, resulting in a historical maximum account drawdown of around just 2% when the strategy is unlevered. Second, we dynamically deleverage whenever there is even a slight risk of liquidation
What If Our Hedge Short Positions Rise Significantly? Would That Put Us At Risk Of Liquidation? (JLP DN)
No, it won’t, because our underlying collateral (JLP) increases in value as well.
Can You In Theory Manipulate A Low-Liquidity Shitcoin on Drift, Executing A “Pump-And-Dump” To Drain Funds?
No.
This is as we are limited to trading only tokens listed on Drift.
Can I Get Liquidated in the SOL/ETH/BTC Super Staking Vaults?
No, liquidations are not a concern.
Our quants and traders proactively manage risk through converting all assets to the vault's focused asset (SOL/ETH/BTC) if the health factor drops below a certain threshold, ensuring protection of your position.
How Do You Achieve The Advertised APY? (JLP associated strategies)
We hold JLP as collateral to earn trading fees, liquidation fees and borrowing fees from Jupiter perps traders (according to Jupiter, it’s 42.08% as of 03/05/2025).
The vault holdings of JLP, an index token representing a basket of SOL/ETH/BTC/USDT/USDC, are then hedged to create a yielding delta neutral position. (edited)
How Sustainable Is The Current APY? What Factors Could Cause Significant Fluctuations? (JLP associated strategies)
The yield ultimately depends on the trading activity of Jupiter perps traders.
Depending on market conditions, perp short positions that hedge the price movements of JLP can either be a yield source or a strategy cost. In addition, borrowing costs of USDC, in regards to our dynamically leveraged strategies, are varied and as such so are the associated costs. Lastly, JLP APY is correlated to JLP’s assets under management (AUM) cap. JLP fees are spread amongst all holders, thus dilution of its APY may occur as more JLP is minted against an increased amount of AUM.
In each market condition JLP positions remain delta neutral, however these differences affect the APY.
What Are The Risks?
For JLP DN, click the link below:
https://neutraltrade.medium.com/risks-of-the-jlp-delta-neutral-strategy-294d0899ece4
For the full risk warnings and disclaimers statement, click the link below: https://docs.neutral.trade/legal/risk-warnings-and-disclaimers-statement
How To Contact Support?
For general questions, feel free to ask in our Discord #General channel or on our Telegram chat here:
https://discord.gg/neutraltrade
For specific deposit inquiries, feel free to create a support ticket in our Discord.
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