FAQs
Can anyone create a Vault?
Currently, individual users are not able to create a vault or become a vault owner on Paradex. This feature will be coming soon, so stay tuned for more information!
What is the difference between a vault owner and a vault operator?
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 deposited funds and is responsible for trading to generate returns.
How are profits distributed in a vault?
Profits are distributed based on the vault's profit share structure. A percentage goes to the vault owner, while the rest is distributed among depositors proportional to their share in the vault.
What is the minimum owner share?
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 depositors.
How long after my deposit can I withdraw my funds?
Because withdrawal transactions cannot be performed in the same block as a deposit, there is currently around a 5 minute window where you will not be able to withdraw fund immediately after deposit. This is the time that is required to created this new block for the withdrawal transaction. Otherwise, the time is also limited by the Lockup Period that is configured for the Vault. This can be found just above the Deposit button with the other Vault status.
How is the performance of a vault calculated?
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.
Are there any fees associated with using vaults?
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.
How secure are Paradex Vaults?
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.
Can I create a private vault?
Again, currently individual users cannot create vaults at this time. That being said, once this feature is available for all, vault owners will be able to create public or private vaults. Setting a vault to be private will allow the owner to control who can deposit funds.
How can I monitor my vault's performance?
Paradex provides detailed analytics for both public and private 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.
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