How vaults work
Overview
Vaults allow experienced traders to manage capital on behalf of investors through a transparent, dedicated trading account.
A Vault is managed by a Vault Manager, while other users can participate as investors by depositing funds into the Vault. All profits and losses generated by the Vault are shared proportionally among investors based on their ownership share.
Vaults are designed for users who want exposure to an active trading strategy without directly managing positions themselves, while also allowing skilled traders to build a track record and earn performance based profit share.
Vault Roles
Vault Manager
A Vault Manager can create and operate multiple Vaults with no maximum limit.
Managers are responsible for:
Trading the Vault account
Managing positions and risk
Controlling whether new deposits are accepted
Setting the Vault profit share rate (0% - 100%)
Managing Vault visibility settings
Distributing profits to investors
Closing the Vault when appropriate
To create a Vault, managers must:
Stake 100 ASTER
Make an initial investment of at least $100
Create a unique Vault
Configure Vault settings( privacy mode; lock-up period, profit share)
Each Vault receives its own dedicated account address and operates independently from the manager's personal trading account.
ASTER Creation Requirement
Creating a Vault requires locking 100 ASTER.
When the Vault is permanently closed:
If the Vault's lifetime Total PnL is positive, the 100 ASTER is returned to the manager.
If the Vault's lifetime Total PnL is zero or negative, the 100 ASTER is permanently burned.
Investors
Investors can deposit supported assets into a Vault and receive a proportional ownership share of the Vault's net asset value (NAV).
Investors do not directly control positions within the Vault. All trading decisions are made by the Vault Manager.
Minimum Manager Ownership
The Vault Manager can set the minimum ownership percentage of the Vault when create.
This requirement ensures managers maintain meaningful exposure alongside investors and keeps incentives aligned.
If the manager's ownership falls below the requirement:
New investor deposits will be disabled.
The manager cannot redeem additional funds.
The restriction remains in place until the ownership requirement is restored.
Profit Share
Vault Managers may charge a performance fee on realized investor profits, there is no profit share for unrealized PNL.
The profit share rate can range from 0% to 100% and is displayed on the Vault page before investing.
Performance fees are charged when:
An investor redeems funds with realized profits
The Vault Manager distributes profits through a Fund Distribution
While manager closed vault and the there are the investors closed with profit.
No profit share is charged on losses.
Lock-Up Period
Each Vault defines a lock-up period, with a default duration of 1 day.
During the lock-up period, deposited funds cannot be redeemed.
Every new deposit resets the lock-up timer for the investor's entire position.
For example:
If a Vault has a 7-day lock-up period and an investor deposits funds on January 1 at 10:05 AM, redemption becomes available on January 8 at 11:00 AM.
If the same investor deposits additional funds at 11:05 AM on January 1, the lock-up timer resets and redemption becomes available on January 8 at 12:00 PM.
Any new deposit resets the lock-up period for the investor's entire position.
Auto Close on Redeem
This setting determines how the Vault handles redemption requests when there is insufficient available balance to satisfy a withdrawal. To prevent investors from incurring significant losses due to Vault strategies or market volatility, investors can redeem their investments after the lock-up period ends. However, the Manager can configure two redemption mode when they create vault. Redemption by investors may involve position close. If redemption is triggered during periods of extreme market volatility, it may result in slippage and transaction fee costs. Therefore, the expected redemption amount may differ from the final amount actually received.
Auto Close on Redeem: ON
When a redemption request is submitted, open positions are partially closed according to the redemption share.
For example, if a redemption represents 10% of the Vault's value, approximately 10% of all positions will be closed.
This method ensures investors can access their proportional share of Vault assets immediately. Because positions are closed using market execution, redemption proceeds may be affected by slippage and market conditions.
Auto Close on Redeem: OFF
When a redemption request is submitted, the system releases funds using the following sequence:
Available Margin
Open Orders
Open Positions
Positions are only reduced when necessary to satisfy the redemption amount.
This approach may reduce trading impact and unnecessary position closures but can require additional steps before liquidity becomes available.
Privacy Modes
Vaults support three privacy options, this setting is permanent and cannot be changed.
Public Mode
All Vault activity, positions, orders, and account information are publicly visible in both Aster chain and Vault info page.
Private Mode
Vault positions, orders, balances, and account information remain private.
Flexible Mode
The Vault Manager may switch between public and private visibility modes at any time.
Vault Account Restrictions
Vault accounts are specialized accounts designed exclusively for managed perpetual futures trading.
Whitelist investors
vault manager can open the whitelist function and only the whitelist users can invest in the vault
Trading Restrictions
Vault accounts may only trade perpetual futures products.
The following activities are not supported:
Spot trading
Shield products
Staking products
Deposit, Withdrawal & Transfer Restrictions
Direct blockchain deposits are not supported.
Direct blockchain withdrawals are not supported.
Assets cannot be transferred to other FUIDs.
Transfers between Vault Spot and Vault Futures accounts are not supported.
Investor deposits are automatically transferred into the Vault Futures account.
Account Structure Restrictions
Vault accounts cannot:
Create sub-accounts
Create additional Vaults
Participate in referral programs
Bind referral codes
Invite other users
VIP & Account Tier
Vault accounts do not inherit the Vault Manager's VIP level.
Trading fees and VIP status are calculated independently for each Vault account.
Vault accounts are not eligible for Market Maker (MM) account tiers.
Rewards & Campaign Restrictions
Vault accounts do not participate in:
Points programs
Points airdrops
Spot trading competitions
Spot reward campaigns
Promotions that distribute rewards directly to spot accounts
API Access
Vault accounts can create API keys and support API-based trading.
Distribute Fund
Vault Managers may distribute available profits directly to investors without requiring investors to redeem their Vault shares.
When a distribution occurs:
Funds are distributed proportionally based on ownership shares.
Investors remain invested in the Vault.
Applicable profit share fees are paid to the Vault Manager.
Distributions may only be performed once every 24 hours.
This mechanism allows investors to realize profits while maintaining exposure to the Vault's trading strategy. Distribute fund= Max withdraw * Buffer, current buffer is 50%
Vault Performance Metrics
Each Vault provides performance information including:
Metric
Description
TVL
Total Value Locked
APR
Historical annualized return
Total PnL
Lifetime profit and loss
Max Drawdown
Largest historical decline
Trading Volume
Historical trading activity
Win Rate
Percentage of profitable positions
Investor Count
Number of participating investors
Performance data is provided for informational purposes only and does not guarantee future results.
Closing a Vault
A Vault Manager may permanently close a Vault.
Before closing:
All positions must be closed.
All open orders must be cancelled.
After closure:
Remaining funds are distributed according to ownership shares.
Profit share fees are calculated if applicable.
The manager's 100 ASTER creation stake is either returned or burned based on Vault performance.
Risks reminder
Investing in a Vault involves substantial risk.
Investors should understand that:
Past performance does not guarantee future results.
Vault Managers may incur trading losses.
Leveraged futures trading carries liquidation risk.
Redemptions may be affected by market conditions.
Position closures may generate slippage.
Vault values may fluctuate significantly over time.
Investors should carefully evaluate a Vault's strategy, historical performance, risk profile, manager track record, and lock-up terms before investing.
Frequently Asked Questions
1. Who controls trading decisions inside a Vault?
All trading decisions are made by the Vault Manager.
2. Can I withdraw my funds at any time?
No. Funds can only be redeemed after the Vault's lock-up period.
3. How are profits distributed?
Profits and losses are allocated proportionally based on each investor's Vault ownership share.
4. Can the Vault Manager stop new deposits?
Yes. Managers can enable or disable deposits at any time.
5. Can a Vault trade spot markets?
No. Vault accounts are restricted to perpetual futures trading.
6. Does investing in a Vault guarantee profits?
No. All investments are subject to market risk and losses are possible.
7. Can I see a Vault's performance before investing?
Yes. Each Vault displays performance metrics, historical returns, TVL, and other relevant information.
8. Can I redeem only part of my investment?
Yes. Partial redemptions are supported, subject to lock-up restrictions and available redemption limits.
9. What is Fund Distribution?
Fund Distribution allows the Vault Manager to distribute available profits to investors without requiring them to redeem their Vault shares.
10. Why must the manager maintain at least 10% ownership?
The requirement ensures the manager maintains meaningful exposure to the Vault and aligns incentives between managers and investors.
11. What happens if a Vault is closed?
All remaining assets are distributed according to ownership shares after positions and orders have been closed.
12. Can a Vault Manager change Vault settings after creation?
No. Core Vault settings are permanent once the Vault has been created.
13. What happens if I make another deposit during the lock-up period?
Any new deposit resets the lock-up period for your entire Vault position. Your next redemption time will be recalculated based on the most recent deposit.
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