For Vault Depositors
As a vault depositor, you entrust USDC to a vault operated by an AI agent or a human vault leader. Your funds are traded on your behalf, and you earn (or lose) proportional to the vault’s performance.
How Depositing Works
Step 1: Browse Available Vaults
Navigate to the Vaults section on GX Exchange. Each vault displays:
| Field | Description |
|---|---|
| Vault name | Identifier and strategy description |
| Leader/Operator | AI tier (Capital Guard, Growth, High Octane) or human leader address |
| Total equity | Combined vault assets |
| Cumulative return | All-time performance |
| Max drawdown | Largest peak-to-trough decline |
| Performance fee | Fee charged on profits (12-20%) |
| Depositor count | Number of current depositors |
Step 2: Select a Vault
Choose a vault that matches your risk tolerance and investment goals. Review:
- Strategy description — Understand how the vault trades
- Historical performance — Past returns and drawdowns (remember: past performance does not guarantee future results)
- Risk parameters — Max leverage, max drawdown, daily loss limit
- Performance fee — The fee charged on profits above the high-water mark
Step 3: Deposit USDC
- Click Deposit on the vault’s page
- Enter the amount of USDC to deposit
- Review the vault’s terms (lock-up period, performance fee, risk parameters)
- Sign the deposit transaction
- Your USDC is added to the vault, and you receive a proportional share
Step 4: Monitor Performance
After depositing, you can track your investment in real time:
- Your share — Your percentage of total vault equity
- Current value — Your deposit plus/minus your share of PnL
- Unrealized PnL — Profit or loss from open positions
- Realized PnL — Settled profit or loss from closed trades
- Performance fee accrued — Fee that will be deducted when you withdraw
Withdrawing
Standard Withdrawal
- Navigate to your vault dashboard
- Click Withdraw
- Enter the amount (or select “Max” for full withdrawal)
- Sign the withdrawal transaction
- Your share of the vault’s equity is returned in USDC
Withdrawal Accounting
When you withdraw, the following is calculated:
Your equity = (your_shares / total_shares) * vault_total_equity
Performance fee = fee_rate * max(0, your_equity - high_water_mark_value)
You receive = your_equity - performance_feeIf the vault is currently at a loss relative to your deposit, no performance fee is deducted.
Lock-Up Periods
Some vaults may have a lock-up period set by the vault leader. During the lock-up:
- You cannot withdraw your deposit
- You continue earning (or losing) proportional to vault performance
- After the lock-up expires, standard withdrawal rules apply
AI Trading Vaults have no lock-up — you can withdraw at any time.
Risk Factors
Depositing into a vault involves risk. You should understand the following before depositing:
| Risk | Description |
|---|---|
| Market risk | The vault’s positions may lose value due to adverse price movements |
| Leverage risk | Leveraged positions amplify both gains and losses |
| Strategy risk | The vault’s trading strategy may underperform or incur losses |
| Max drawdown | Even with auto-pause, the vault may lose up to its maximum drawdown percentage |
| Liquidity risk | In extreme market conditions, positions may be liquidated at unfavorable prices |
| AI risk | For AI vaults, the AI may make suboptimal decisions in unusual market conditions |
Only deposit what you can afford to lose entirely.
Custody and Security
Your deposits are protected by multiple layers of security:
| Layer | Protection |
|---|---|
| Non-custodial delegation | Vault operators can trade but cannot withdraw your funds |
| Protocol-level enforcement | Withdrawal restrictions are enforced by GX Core at the protocol level (for both AI vaults and on-chain vaults) |
| Risk validator | Hard-coded Rust risk checks reject trades that violate risk parameters |
| Auto-pause | Vaults automatically stop trading when max drawdown is reached |
| Insurance fund | Protocol insurance fund backstops liquidation shortfalls |
Fees
| Fee | Amount | When Charged |
|---|---|---|
| Performance fee | 12-20% of profits | Only when you profit above the high-water mark; deducted at withdrawal |
| Management fee | 0% | Never |
| Deposit fee | 0% | Never |
| Withdrawal fee | 0% | Never |
You are never charged when the vault loses money. Fees only apply to profits.
Frequently Asked Questions
What is the high-water mark (HWM)? The HWM is the highest value your deposit has reached. Performance fees are only charged on new gains above the HWM. If the vault drops and recovers, you are not charged again on the recovery portion up to the previous HWM.
Can the vault operator steal my funds? No. Vault operators have trade-only access. They cannot initiate withdrawals from your account. This is enforced at the protocol level.
What happens if the vault hits max drawdown? Trading is automatically paused. Your funds remain in the vault. You can withdraw at any time. Trading resumes only after a manual review or cooldown period.
Can I deposit into multiple vaults? Yes. You can spread your capital across multiple vaults with different strategies and risk profiles.
How often is PnL updated? PnL is updated in real time with every block (near-instant finality). Your dashboard always shows the current value of your investment.