Operated by Paradex. These are protocol managed VTFs backed by the team, offering curated strategies with the highest level of oversight and transparency.
Run by vetted, third party operators who have been reviewed and approved by Paradex. These operators meet specific criteria around track record, strategy quality, and risk management, giving depositors added confidence.
Fully permissionless. Anyone can create a Community VTF, configure its parameters, and start managing capital. This opens VTF creation to all traders and strategy builders.
Paradex VTFs combine spot, perpetual futures, and options strategies in a single fund, allowing depositors to gain diversified exposure without managing separate accounts. VTFs also support multiple collateral types, unlocking a new design space for yield generation.
Paradex is one of the first on chain DEXs to offer portfolio margin. With offsetting positions (e.g. long spot and short perp), VTFs require significantly less margin, allowing operators to trade larger sizes with less capital. This unlocks maximum leverage across complex portfolios.
Depositing into a VTF mints VTF Tokens for the depositor. You can monitor the price of this token, which depends on the value of the fund and its total supply.
VTF LP tokens can be used as collateral on Paradex. A delta neutral VTF (long spot, short perp) produces an LP token with synthetic dollar status, enabling holders to use it as collateral for trading or to deposit into other VTFs directly on the platform.
Paradex’s off chain order book ensures VTF and account orders are fully protected from front running. This addresses a major challenge that has caused issues for vault operators on other platforms.
The withdrawal process is designed to be fair and minimize impact on other participants. A share of each position is moved to an auxiliary account for an unwind. This protects other users from any unwind cost regardless of market conditions and the withdrawn amount.
The unwind process within the auxiliary account gradually closes positions on the market to minimize slippage for the withdrawer.
Configurable by the VTF owner:
