For Vault Leaders

Vault leaders are experienced traders who create and manage vaults on GX Exchange. As a vault leader, you operate a public vault that other users can deposit into, and you earn performance fees on the profits you generate.

What Is a Vault Leader?

A vault leader is the designated operator of a user vault. You make trading decisions (or configure automated strategies), and depositors follow your performance. Your reputation and track record are publicly visible on-chain.

Creating a Vault

Step 1: Meet the Requirements

Your own capital in the vault ensures alignment with depositors — you have skin in the game.

Step 2: Configure Vault Parameters

When creating a vault, you set the following parameters:

Step 3: Deploy the Vault

1. Navigate to the Create Vault page on GX Exchange
2. Fill in your vault parameters
3. Deposit your initial capital
4. Sign the creation transaction
5. Your vault is live and visible on the vault marketplace

Managing Your Vault

Trading

As vault leader, you trade on behalf of all depositors. Your trades are executed through the vault’s account:

• Place orders via the GX Exchange interface or API
• All standard order types are available (limit, market, IOC, FOK, post-only, reduce-only)
• Position sizing is relative to total vault equity (your capital + depositor capital)
• Risk controls are enforced automatically — you cannot exceed the max leverage or position size defined at creation

Deposits and Withdrawals

• Depositors can join your vault at any time (subject to any lock-up period)
• When a depositor adds funds, their share of the vault is calculated based on the current NAV
• When a depositor withdraws, their proportional share of the vault’s equity is returned
• Withdrawal requests may have a processing period (up to 24 hours) to allow orderly position unwinding

Performance Fee Collection

Performance fees are calculated using a high-water mark (HWM) model:

1. The HWM tracks the highest net asset value per share achieved by the vault
2. Performance fees are only charged on new profits above the HWM
3. If the vault incurs losses, no fee is charged until the NAV exceeds the previous HWM
4. Fees are deducted automatically when depositors withdraw

Example:

Depositor puts in 1,000 USDC
Vault grows to 1,200 USDC (HWM = 1,200)
  -> Performance fee on $200 profit

Vault drops to 1,100 USDC
  -> No fee (below HWM)

Vault recovers to 1,300 USDC
  -> Performance fee only on $100 new profit above the 1,200 HWM

Vault Metrics

Your vault’s performance is publicly tracked:

These metrics are calculated in real time and displayed on the vault’s public page.

Best Practices

1. Lead with your own capital. A larger personal deposit signals confidence in your strategy and attracts depositors.
2. Set conservative risk parameters. A lower max drawdown and leverage limit builds trust. You can always trade within your limits without hitting them.
3. Communicate your strategy. Write a clear description of your trading approach, target markets, and risk philosophy. Update it as your strategy evolves.
4. Manage risk actively. Use stop-losses on every position. Monitor your drawdown. Pause trading during uncertain markets rather than forcing trades.
5. Build a track record. Consistent returns over time attract more capital than sporadic large wins. Focus on sustainable performance.

Vault Leader Fees

Your earnings are purely performance-based. Build a great track record, attract capital, and earn proportionally.