Circuit Trade
Search
K
💡

FAQ

General

What strategies are the vaults running?

Our first Supercharger Vault will be running a delta-neutral market making and liquidity provision strategy, primarily on Drift's perpetual markets.

Are Circuit Vaults non-custodial?

Yes, Vaults are non-custodial — the user's funds remain within their custody at all times. Circuit Vault Managers can only place or cancel orders on the account. Vault Managers CAN NOT withdraw any asset.

Are Circuit vaults multi-chain?

The first Circuit Vaults will be launching on Solana via Drift, but the vision for Circuit is multi-chain. Circuit vaults will also be launching market making strategies for DEXs on different blockchains and L2s, such as Solana, Ethereum, Arbitrum.

Is Circuit Vault contract audited?

Circuit Vaults are audited by Ottersec. Circuit also has native integrations with underlying DEXs, only working with DEXs that have been audited. Circuit's Supercharger Vault is integrated with Drift Protocol which has been audited by Trail of Bits and Ottersec.

What are the risks for depositing into Circuit Vault?

The primary risks associated with this strategy are:
  1. 1.
    Counterparty risk: In the event that the DEX utilised by Circuit is hacked or malfunctions, Circuit may potentially lose all of its assets on this DEX.
  2. 2.
    Smart contract vulnerabilities and UI errors: These risks could potentially result in unexpected behaviour and loss of funds.
  3. 3.
    Delta and hedging risk: If the market is volatile, the price of the underlying asset may move more than the delta hedge is expecting. If there is low underlying liquidity for the asset being traded, this may lead to difficulties hedging, which may lead to delta-related losses for the market maker.

Vaults

How do I deposit into Circuit Vaults?

Here is a step-by-step guide.

What is the minimum deposit for vaults?

For the permissionless Circuit Vaults, there is a minimum of $5k per initial deposit.

Can a Circuit Vault Manager move funds out of the vault?

No. The Circuit Vault contract is designed to facilitate fund deposits into the market-making account on decentralised exchanges (DEXs), where Circuit engages in market-making activities.
Vault managers have the authority to place or cancel orders within the account, but they are restricted from withdrawing any assets. Consequently, users retain custody of their funds.

What are the fees charged on Circuit Vaults?

Circuit does not charge any management fee, only a 30% performance fee will be charged. Read more about Circuit's fee structure here.

When will fees be charged after I deposit into Circuit Vault?

The performance fee is charged upon withdrawal after users request to withdraw funds. Performance fees will only be charged on the premiums earned if the strategy is profitable.

When can I withdraw my funds?

After a short 30-day cooling period for each strategy, users can request to withdraw their funds and any P&L from the account at any time, minus the accrued performance fee.
The cooling period is used for the vault manager to unwind their position.