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# Key Features

## Types of VTFs

#### DIME VTFs

Operated by Paradex. These are protocol managed VTFs backed by the team,
offering curated strategies with the highest level of oversight and
transparency.

#### Verified Operator VTFs

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.

#### Community VTFs

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.

## Multi Asset Strategies

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.

## Portfolio Margin

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.

## VTF Tokens

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.

## Order Privacy (No Front Running)

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.

## Efficient Withdrawals

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conditions and the withdrawn amount.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 Parameters

*Configurable by the VTF owner:*

* Maximum TVL
* Profit Share (between 0% and 30%)
* Lockup Period (between 1 and 4 days)