Lifecycle

Lifecycle of N-Vault

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.

     • Any coupon or option payouts that has been distributed is withdrawable.

3. Matured Phase (Typically less than 1 day):

   • User can only withdraw coupon and option payouts.

   • 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)

  • 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.

• The principal is withdrawn immediately, while the option value, if applicable, is typically transferred to the user's wallet address within 24 hours.

• Deposits below the block size threshold remain locked until maturity.

• Early Withdrawal is available up to one day before maturity.

• Any undistributed coupons will be forfeited.

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.

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.