Yes! Anyone can create a VTF as long as you deposit the minimum initial owner deposit of $100.
A VTF owner is the account that controls the VTF and receives a share of the profits. A VTF operator is a specialized account that has access to the deposited funds and is responsible for trading to generate returns.
Profits are distributed based on the VTF’s profit share structure. A percentage goes to the VTF owner, while the rest is distributed among depositors proportional to their share in the fund.
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 funds immediately after deposit. This is the time that is required to create this new block for the withdrawal transaction. Otherwise, the time is also limited by the Lockup Period that is configured for the VTF. This can be found just above the Deposit button with the other VTF status.
VTF performance is calculated based on the change in the fund’s total value over time. This includes trading profits, losses, and any fees incurred.
Fees may vary depending on the specific VTF. Typically, there’s a profit share for the VTF owner. Always check the VTF’s details for specific fee information.
Paradex VTFs are built with robust security measures, including role based access control and smart contract governance. However, as with any DeFi product, there are inherent risks, and users should do their own research before participating.
Paradex provides detailed analytics for VTF operations. You can see an overview from your Portfolio and also get a more detailed analysis by clicking on the VTF from the main VTFs page.
Yes, XP will be awarded to your account on a weekly basis. VTFs earn Fee, Maker, OI, and TVL XP just like any normal accounts. These XP earned will then be distributed to depositors every Friday as VTF XP. Deposit in VTFs with an active XP boost for a higher earn rate.
The ROI is calculated based on the VTF’s current token price divided by the initial token price (which is $1).
The P&L and ROI of the VTF could be different due to differences in a VTF’s TVL at different time periods.
A VTF’s P&L could be positive due to higher returns on a higher TVL base (somebody had deposited money in the VTF), but negative in ROI because it had negative returns on a smaller TVL base.
