To generate yield on top of your assets, they are collateralized on lending platforms like Kamino or Loopscale, and a stablecoin is borrowed against them. This borrowed stablecoin is then deployed into automated, quantitatively risk-managed, funding rate arbitrage across perpetual DEXs.

While our vaults employ conservative strategies and automated risk management, all DeFi activities carry inherent risks. Market volatility can reduce the value of your collateral, leading to possible liquidation if thresholds are breached. Smart contract vulnerabilities or failures in integrated platforms like Kamino may also impact funds. Additionally, stablecoin depegging or network disruptions could affect yield performance or withdrawals.
Delta-neutral strategy features tight risk management, including automatic margin rebalancing, deleveraging upon predefined thresholds, and partial TP/SL mechanism

Yield on xStocks Vault compounds automatically, as users hold a yield-bearing token that continuously reflects performance. The system operates in 48-hour epochs, with each new epoch compounding returns from the previous one. Once you deposit, your assets begin generating yield at the end of the next epoch.

Withdrawals follow the same 48-hour epoch cycle. When you request a redemption, it’s queued and collected at the end of the current epoch. During the following epoch, the request is processed, and funds become claimable in the next, typically within 48 to 96 hours after initiating the withdrawal.