FAQ

What is the source of yield for N-Vaults? Base Yield: Fixed-Yield from Pendle's Principal Tokens (PT), and potential boosted yield from structured options strategies.

What is a zero-coupon bond? A zero-coupon bond is sold at a discount to its face value and does not pay periodic interest. Instead, the investor receives the full face value at maturity, with the return being the difference between the purchase price and face value. Why is there a block size for early withdrawals? The block size is required due to the limitations associated with unwinding the structured options strategy before maturity. It is designed to align with the contract sizes of exchanges and/or the minimum trade size required by market makers.

Why are early withdrawals not 100% Principal-Protected? Early withdrawals are not 100% principal-protected because they involve selling assets based on current market prices, which may fluctuate. This can result in losses due to price volatility, unrealised option value, or liquidity constraints. Full principal-protection only applies at maturity. How does Auto-Roll work? If users do not withdraw their principal balance before the next epoch goes live, N-Vault automatically reinvests it into the new epoch. Since each epoch may have a different tenor, APY, option structure, and coupon rate, users should review the indicative parameters before deciding to stay invested. Only the principal balance is rolled over, while profits and coupons are not automatically reinvested and must be withdrawn separately. How are estimated APYs determined, and why are they shown as a range (e.g., 5-185%)? Estimated APYs refers to the annualised returns (net of performance fees) of the N-Vault's total returns from coupons and option payouts. The lower end of the APY range represents the base case, which assumes only the guaranteed coupons are received as profits. The higher end reflects the best-case payout scenario, factoring in the maximum potential return from the options strategy at maturity. [Annualised Return = Total Return × 365/N] where N is the no. of days between the Live and Maturity date.