# N-Vaults

## How does it work?

N-Vaults are capital pools designed to replicate TradFi structured notes, which typically consist of two key components: a [zero-coupon bond](https://www.investopedia.com/terms/z/zero-couponbond.asp) and a structured options strategy. The zero-coupon bond ensures principal-protection at maturity, while the structured options strategy offers the potential for enhanced returns.

{% hint style="info" %}
100% Principal-Protected Structured Note = Zero-Coupon Bond + Options Strategy
{% endhint %}

N-Vault’s zero-coupon bond component is fully on-chain, powered by Pendle Finance’s [Principal Tokens (PT)](https://docs.pendle.finance/ProtocolMechanics/YieldTokenization/PT), while the options strategy is deployed through CEXs, DEXs, or market makers (MM).

<figure><img src="/files/3I8UakQOuY5QhZoMKZAN" alt=""><figcaption><p>N-Vault Flows</p></figcaption></figure>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.superhedge.com/superhedge-products/n-vaults.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.