Decibel also operates the DLP Vault, a protocol-owned vault that provides initial exchange liquidity and serves as the backstop liquidator. The mechanics below apply to all vaults, but the DLP Vault has additional responsibilities described on its own page.
How Vaults Work
A vault manager creates a vault, deposits their own capital, and accepts contributions from other users. The manager trades with the pooled capital, and profits (after fees) are distributed proportionally to all vault share holders.Key Differentiators
| Decibel Vaults | Copy Trading | |
|---|---|---|
| Ownership | Fungible tokens (transferable) | Account-level tracking |
| DeFi composability | Use shares elsewhere | Locked in platform |
| Execution | Single pool, no cascade | Individual orders per follower |
| Manager incentive | Capital at risk | Often just fees |
| Fee transparency | On-chain, verifiable | Opaque |
Fungible Token Ownership
Vault shares are fungible tokens on Aptos. You can:- Transfer shares to another wallet
- Use shares as collateral in other DeFi protocols
- Trade shares on secondary markets
Interval-Based Performance Fees
Vault managers set their own fee rate within protocol limits. Fees are calculated on an interval basis — not using a high watermark.How It Works
- The manager picks a fee rate (0–10%) and a fee interval (30–365 days) at vault creation.
- At the end of each interval, the protocol checks if the vault’s NAV increased since the interval started.
- If the vault profited, the manager receives their fee percentage as newly minted shares.
- If the vault lost money or broke even, the manager earns nothing for that interval.
- Each interval resets independently — there is no carry-forward of losses between intervals.
Vault Parameters
| Parameter | Value |
|---|---|
| Performance fee range | 0–10% (set by manager) |
| Fee interval | 30–365 days |
| Min manager capital | Lesser of 5% of vault NAV or $100,000 |
| Min contribution | $10 per deposit |
| Min redemption | $5 per withdrawal |
Contribution Lockup
Vault managers can configure a contribution lockup period of up to 7 days. If a lockup is set, contributors cannot redeem their shares until the lockup period expires after their most recent contribution. This gives the manager time to deploy new capital without immediate redemption pressure. Lockup durations vary by vault — check the vault’s details before contributing.Manager Capital at Risk
Vault managers must deposit and maintain their own capital. The protocol requires the manager to hold at least the lesser of 5% of vault NAV or $100,000. This aligns incentives: the manager’s money is at the same risk as yours. If the vault loses money, the manager loses money too. This is different from copy trading, where the trader you’re copying may be running a strategy optimized for other accounts or simply collecting flat fees.No Cascade Execution
With copy trading, every follower’s trade must execute individually. If a popular trader places an order and 1,000 people copy it, that’s 1,000 separate transactions hitting the market. This creates:- Slippage as each order moves the market
- Latency as orders queue up
- Different fill prices for each follower
Getting Started
Vault Integration Guide
Step-by-step guide to creating and managing vaults
Contribute to a Vault
How to deposit into an existing vault
DLP Vault
Learn about the protocol-owned liquidity vault
Fees
Full fee breakdown including vault performance fees