Vault System
GX Exchange implements a comprehensive vault system that serves two distinct purposes: protocol-level risk management and user-facing investment products.
Vault Types
| Vault Type | Purpose | Documentation |
|---|---|---|
| Protocol Vaults | Insurance fund, liquidation backstop, protocol treasury | Protocol Vaults |
| AI Trading Vaults | Automated perpetual futures trading via AI agents | AI Trading Vaults |
| User Vaults | Community-managed trading vaults led by experienced traders | For Vault Leaders |
How Vaults Work
All vaults on GX Exchange share a common architecture:
- Deposit — Users deposit USDC into a vault via the GXVault smart contract
- Execution — The vault operator (AI agent or human leader) trades perpetual futures on behalf of depositors
- Accounting — Profits and losses are tracked per depositor, proportional to their share of the vault
- Withdrawal — Users can withdraw their share at any time, subject to the vault’s withdrawal terms
Custody Model
Vaults use a non-custodial delegation model:
- Vault operators can place trades on behalf of depositors
- Vault operators cannot withdraw depositor funds
- This is enforced at the GX Chain protocol level via GX Core’s native API wallet mechanism (for AI vaults) and GX Core’s delegation system (for on-chain vaults)
- Depositors always retain the ability to withdraw their funds
Fee Structure
| Fee Type | Description |
|---|---|
| Performance fee | Charged only on profits above a high-water mark. Ranges from 12-18% depending on vault type. |
| Management fee | None. GX Exchange does not charge management fees on any vault. |
| Builder code fee | 1 basis point (0.01%) on every trade, collected automatically via GX builder codes. |
The performance fee ensures that vault operators are only compensated when they generate returns for depositors. No profit, no fee.
Risk Controls
All vaults are subject to hard-coded risk controls that cannot be overridden:
| Control | Description |
|---|---|
| Max drawdown | Automatic pause when cumulative drawdown exceeds the vault’s limit |
| Daily loss limit | Trading halted for the day when daily losses exceed the threshold |
| Position size limit | Maximum percentage of vault equity per single position |
| Leverage limit | Maximum leverage per trade, defined by vault tier |
| Stop-loss requirement | Every position must have a stop-loss order |
These controls are enforced by the GX Core risk validator — a deterministic Rust module that evaluates every trade before execution. If any rule is violated, the trade is rejected.
Further Reading
- Protocol Vaults — Insurance fund and liquidation backstop
- AI Trading Vaults — Automated trading with Claude/GPT-4
- For Vault Leaders — Creating and managing vaults
- For Vault Depositors — Depositing into vaults and managing your investment