FAQs

Yes! Anyone can create a Vault as long as you deposit the minimum initial owner deposit of $100.

A vault owner is the account that controls the vault and receives a share of the profits. A vault operator is a specialized account that has access to the funds and is responsible for trading to generate returns.

Profits are distributed based on the vault’s profit share structure. A percentage goes to the vault owner, while the rest is distributed among vault token holders proportional to their share in the vault.

The minimum owner share is the percentage of the vault that must be maintained by the vault owner. This ensures the owner has “skin in the game” and aligns their interests with other vault token holders.

Because sell transactions cannot be performed in the same block as a buy, there is currently around a 5 minute window where you will not be able to sell tokens immediately after buying. This is the time that is required to created this new block for the sell transaction. Otherwise, the time is also limited by the Lockup Period that is configured for the Vault. This can be found just above the Buy button, in the Vault Stats section.

Vault performance is calculated based on the change in the vault’s total value over time. This includes trading profits, losses, and any fees incurred.

Fees may vary depending on the specific vault. Typically, there’s a profit share for the vault owner. Always check the vault’s details for specific fee information.

Paradex Vaults are built with robust security measures, including role-based access control and multi-signature approvals. However, as with any DeFi product, there are inherent risks, and users should do their own research before participating.

Paradex provides detailed analytics for vault operations. You can see an overview from your Portfolio and also get a more detailed analysis by clicking on the vault from the main vaults page.

Yes, XP will be awarded to your account on a Weekly basis. Vaults earn Fee, Maker, OI, and TVL XP just like any normal accounts. These XP earnt will then be distributed to vault token holders every Friday as Vaults XP. Buy tokens from Vaults with an active XP boost for a higher earn rate.

The ROI is calculated based on the Vault’s current token price divided by the initial token price (which is $1).

The P&L and ROI of the Vault could be different due to differences in a Vault’s TVL at different time periods

A Vault’s P&L could be positive due to higher returns on a higher TVL base (somebody had bought vault tokens), but negative in ROI because it had negative returns on a smaller TVL base.