How Vaults Work

Profit Calculator: The vaults have a simulator that allows users to predict their withdrawal amounts after the Release.

The vault has the following execution steps:

1. The vault gathers the token deposits from the users

2. The vault stores the tokens in a convertible structured product

3. The product is sold to the Convertible Buyer

4. At the Maturity Date, deposited tokens, stable coin yield and SBK rewards are distributed to the users with respect to their vault shares

How does the convertible work ?

During the Locked State, the price of the underlying token can vary from its initial value. The condition for a partial conversion event is that the price at the Maturity Date is higher than the Limit Price. Note that even if the price fluctuates above the Limit Price during the Locked State but ends up lower than the Limit Price at the Maturity Date, then there will be no conversion.

The vault allows the user to hedge his position with respect to the underlying token: In the eventuality of a conversion event, a share of the underlying token upside is transmitted to the Convertible Buyer but the total value of the vault will still be higher than the initial value during the Deposit State.

In the case of a conversion: The users will still end up with more value than initially deposited, in addition to the stable coin and SBK rewards on top of that.

See Examples to have a more in-depth understanding of the product.