🛟Vaults FAQ
1. How do I deposit into Vaults? To deposit, follow the detailed guide here — How-To-Use Guide
2. What is the minimum deposit for Vaults? You can find this information on the page of the vault you are interested in.
3. Can someone else withdraw funds from the vault except me? No, the Vault contract does not permit Neutral Trade traders or anyone else to withdraw any assets other than you. Traders are solely authorized to place or cancel orders within the vault’s account. Users retain full custody of their assets.
4. When are fees charged? Fees are charged monthly or when you withdraw from the vault.
5. Are the vaults audited?
6. Are there any lockups? Maximum of 24 hours lock-up to withdraw from Vault to prevent manipulation.
7. What if we get liquidated in JLPDN vault?
We can’t get liquidated for several reasons. First, we perfectly 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.
8. What if our hedge short positions rise significantly? Wouldn’t that put us at risk of liquidation?
No, it won’t, because our underlying collateral (JLP) increases in value as well.
9. Can you in theory manipulate a low-liquidity shitcoin on Drift to execute a pump-and-dump and drain funds?
No, we are not able to do that because we are limited to trading only the tokens listed on Drift.
10. Can I get liquidated in the SOL/ETH/BTC Super Staking Vaults? No, liquidation is not a concern. Our quants and traders proactively manage risk by converting all assets to SOL if the health factor drops below a certain threshold, ensuring protection for your position.
11. What are the risks? Check out this article:
https://neutraltrade.medium.com/risks-of-the-jlp-delta-neutral-strategy-294d0899ece4
12. How do you achieve the advertised APY?
We hold JLP as a collateral to earn trading fees, liquidation fees and borrowing fees from Jupiter perps traders (according to Jupiter it’s 60% APY as of 11/18/24).
APY is dynamic, modeled on historical JLP performance and funding rates.
13. How sustainable is the current APY, and what factors could cause significant fluctuations?
The yield ultimately depends on the trading activity of Jupiter perps traders.
If funding rate turns negative then it’s more costly to hedge.
If borrowing costs of USDC shoots up it’s more costly to leverage.
If JUP team continues to raise JLP AUM caps the fees will be diluted across all JLP holders.
15. Are the advertised APYs gross or net of fees?
Gross of fees.
16. How to contact support?
Write your question in our telegram chat, our team will answer you.
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