Vaults are pooled trading accounts managed by a leader. Depositors contribute USDC; the leader trades the pool and earns a share of profits. Every deposit, withdrawal, and trade is onchain.
Vault types
| Type | Who manages | Strategy | Lockup |
|---|---|---|---|
| Protocol vault | Nexwest governance | Backstop liquidations and market making | None |
| Community vault | Independent leader | Discretionary | 1 day |
| Strategy vault | Smart contract | Rule-based | Per contract |
The protocol vault is the backstop for liquidations. Community vaults are created permissionlessly; depositors choose them based on track record, drawdown, and strategy description.
Deposit
- Open Vaults and select a vault.
- Review the leader, fees, lockup, and historical PnL.
- Enter the USDC amount and confirm.
- Receive vault shares at the current share price.
shares = deposit_amount / share_priceShare price starts at 1.00 and changes with the vault's PnL. Deposits are not instant if the vault is at its capacity; they enter a queue.
Withdraw
Withdrawals are subject to the vault's lockup. After the lockup, you can withdraw at the current share price. Withdrawals that would force the vault to close positions may be queued until the next settlement window.
Vaults can lose money
A vault is not a savings account. Past performance does not guarantee future returns. The leader can take positions that lose more than the deposited capital in extreme conditions. Read the vault's strategy and drawdown history before depositing.
Fees
| Fee | Default | Paid to |
|---|---|---|
| Management fee | 0% | Leader |
| Profit share | 10% of new highs | Leader |
| Deposit fee | 0% | Vault |
| Withdrawal fee | 0% | Vault |
Profit share is charged only on the high-water mark. If a vault loses value, the leader does not earn profit share until the share price exceeds the previous high.
Create a vault
A leader must:
- Stake the minimum NXW bond (currently 100,000 NXW).
- Publish a strategy description and risk disclosures.
- Set the profit share (maximum 20%) and lockup (maximum 30 days).
- Deposit seed capital.
The bond is slashed if the leader violates the vault's published mandate or attempts to withdraw depositor funds outside the vault rules.
API
Vault state is available through the Info endpoint:
vaultDetails— share price, TVL, leader, fees.userVaultEquities— your shares and current value.vaultDeposits— deposit and withdrawal history.