> For the complete documentation index, see [llms.txt](https://docs.superhedge.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.superhedge.com/superhedge-products/n-vaults/principal-protection.md).

# Principal-Protection

When N-Vault goes live, the majority of the initial deposit, determined by the PT price, is allocated to Pendle Finance (Fixed-Yield Source), while the remaining portion, equal to (1 - PT Price)%, is deployed in the options strategy.

At maturity, the PT allocation earns enough yield to fully cover the initial deposit, ensuring 100% principal-protection. At the same time, the options strategy offers the potential for boosted yield depending on the performance of the underlying asset at maturity.

<figure><img src="/files/WKkc6P6tqx9Ppnq7yqlp" alt=""><figcaption><p>100% Principal-Protection</p></figcaption></figure>