Examples

As explained in How Vaults Work, if the token price at the Maturity Date is lower than the Limit Price (regardless of the price movement during the Locked State), then there is no conversion and the users simply receive additional stable coin and SBK rewards with respect to their initial deposit value.

Example: Conversion event

Let's take the example of a vault with the underlying token XYZ trading at $16 during the deposit state, the vault Limit Price is $19 and the APY is 15% (10% in stable coin + 5% in SBK). A user deposits 100 XYZ for a total deposit value of $1600.

Let's suppose that the price of XYZ at the end of the Locked state is $20 which is higher than the Limit Price. Then the user withdrawal will be ~95 XYZ (worth ~$1900) in addition to the stable coins ~$160 and SBK rewards ~$80 for a total withdraw value of ~$2240.