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Vault Model

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Single portfolio model

The vault is a single portfolio with open positions. Each user "weighs" a percentage of the vault based on the current value of their share compared to total vault value.

This means:

  • users do not map 1:1 to specific positions

  • users own a percentage claim on the vault

  • exits must be handled pro-rata across the full position set

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User share mechanics (conceptual)

At any point in time:

  • vaultTotalValueNow = current total value of the vault

  • userShareValueNow = current value attributed to the user

  • userWeightNow = userShareValueNow / vaultTotalValueNow

This userWeightNow is the basis for exit percentage calculation when a withdrawal is requested.

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Why pro-rata is required

If a user owns 30% of the vault and the vault holds positions A, B, C:

  • the user cannot be assigned only the winning positions or only the losing positions

  • the vault must close 30% of A, 30% of B, and 30% of C

This keeps accounting fair and auditable.

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Auditability requirement

The smart contract system should emit enough data for third-party verification:

  • vault value at request time

  • user weight at request time

  • close ratio used

  • amount/value realized from position reductions

  • payout basis and PnL sign

  • unlock time for final claim

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Positive and negative PnL symmetry

The model must treat both sides symmetrically:

  • positive PnL increases the user exit value

  • negative PnL reduces the user exit value

No hidden smoothing should be assumed unless explicitly implemented and documented (e.g., reserve buffers).

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