# Lifecycle

<figure><img src="https://3592879-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FycCgi8Q2btDJLeSgNa6m%2Fuploads%2FKlWzATxaVQMsDk7ca3Xg%2FScreenshot%202025-04-02%20at%207.08.42%E2%80%AFPM.png?alt=media&#x26;token=aec87bd5-5441-4f47-985b-56a1717a671e" alt=""><figcaption><p>Lifecycle of N-Vault</p></figcaption></figure>

## **Epoch Lifecycle**

The N-Vault operates in distinct **epochs**, each with defined timelines and user interactions. Here’s how the lifecycle and features are structured:

1. **Live (Start of Epoch):**
   * The N-Vault transitions from the **Indicative Phase** to the **Active Phase** at **1 AM UTC**.
   * User deposits are **locked** and deployed according to the N-Vault strategy.
2. **Maturity (End of Epoch):**
   * The epoch ends on the **last Friday of the calendar month at 9 AM UTC**.

## **N-Vault Status**

1. **Indicative Phase (Minimum 7 Days):**
   * Users can **preview the indicative terms** of the upcoming epoch, including estimated APY, option strategy parameters and coupon payment schedule.
   * Key terms such as **option strikes, coupon rates, and APY** may be updated based on market conditions.
   * **Deposits and withdrawals are fully open** during this phase.
2. **Active Phase (Typically 30–90 Days):**
   * The terms are fixed, user deposits are locked, and the N-Vault deploys pooled capital to:
     * A **fixed-yield source** (e.g., Pendle Finance's Principal-Token).
     * An **options strategy** to generate additional returns.
     * **Only Early withdrawal** is available for amounts in multiples of minimum block size.&#x20;
     * Any coupon or option payouts that has been distributed is withdrawable.&#x20;
3. **Matured Phase (Typically less than 1 day):**
   * User can only withdraw coupon and option payouts.&#x20;
   * **New deposits are not allowed** during this phase, as the indicative terms for the next epoch have not yet been published.

## **User Interactions**

**1. Pre-Deposit (Indicative Phase):**

* Users can review the **investment structure** and indicative returns before the N-Vault enters the **Active Phase**.
* Deposits can **only** be made during this phase using the specific deposit token supported by the N-Vault.
* If users do not already hold the required token, they can:
  * Obtain it via a decentralized exchange (DEX) or centralized exchange (CEX)&#x20;
  * Some input tokens may require minting directly through the deposit token's native protocol.

**2. Withdrawal:**

* **Indicative Phase:** Users can withdraw their total balance, including principal.
* **Matured Phase:** Users can only withdraw coupon and option payouts. Principal remains locked until the next **Indicative Phase**.

**3. Early Withdrawal (Active Phase):**

* Users whose deposits meet the minimum **block size** requirement may request an early withdrawal during the Active phase.&#x20;
* The principal is withdrawn immediately, while the option value, if applicable, is typically transferred to the user's wallet address within 24 hours.&#x20;
* Deposits below the block size threshold remain **locked** until maturity.
* Early Withdrawal is available up to one day before maturity.&#x20;
* Any undistributed coupons will be forfeited. &#x20;

**4. Coupon Withdrawal:**

* Coupons represent **fixed-yield payments** distributed to users according to the schedule shown in product parameters .
* Users can redeem coupons anytime after distribution which happens after 1am UTC on each scheduled payment date.&#x20;

**5. Options Profit Withdrawal:**

* Once the N-Vault reaches the **Matured Phase**, users can withdraw the profits generated from the options strategy at any time.

**6. Auto-Roll:**

* Only the Principal balance will be automatically **rolled-over** to the next epoch if users do not withdraw before the next epoch’s **Live** date.