# XLP Vault (/docs/risex/xlpvault/about) import { Callout } from 'fumadocs-ui/components/callout'; The XLP Vault is a community-owned vault that provides liquidity to markets on RISEx. It performs two roles for the exchange: market making and liquidations. It is a USDC-denominated vault built on Yearn V3 infrastructure. The vault deploys capital for market making on the RISEx perpetuals exchange and absorbs liquidated positions. Depositors receive XLPUSDC shares whose value grows as trading fees, spreads, and liquidation gains flow back to the vault. ## Key features * **ERC-4626 compliant** vault interface for composability. * **Multi-strategy architecture**: 70% crypto market making, 25% RWA market making, 5% liquidation. * Built on the **Yearn V3** vault framework. ## Key terms | | | | ------------------ | ------------------------------------------------------------------------------------------------------------------------------------------- | | **Asset** | USDC | | **Vault token** | XLPUSDC (XLP) | | **Yield source** | Market making and liquidation gains | | **Contract** | [`0xBCf7A882B6A95827B4996055a5018FdC3B95D40c`](https://explorer.risechain.com/token/0xBCf7A882B6A95827B4996055a5018FdC3B95D40c?tab=holders) | | **Security audit** | [Audit by yAudit](https://drive.google.com/file/d/1hfppdkxBYTiXbfinJ2fP70Z6iQKf-HEd/view) | ## Status XLP is in **priority (whitelisted) access** right now. Public launch is coming very soon, with a **\$5M vault cap**. Whitelisted users can access it from the **Vault** tab in the RISEx UI. ## How it works * Depositors put USDC into the vault and receive XLPUSDC shares in return. * Capital is managed across strategies, is configurable, and rebalances every epoch. * Active funds are split across market-making strategies and a liquidation strategy (also called the insurance strategy). Each strategy deploys USDC as collateral on RISEx and performs its designated role. Profits from trading fees, spreads, and liquidation gains flow back to the vault. The current split is: * **`xlp_mm` (70%)**: market making for crypto markets. First in the withdrawal queue. * **`xlp_rwa` (25%)**: market making for RWA markets, with isolated capital. Second in the queue. * **`xlp_insurance` (5%)**: liquidation and takeover, also called the RLP or insurance strategy. Last in the queue. * Share value increases as profits accumulate. Depositors withdraw by redeeming shares for USDC. ### Strategies | Attribute | Market making | Liquidation | | ------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Contract** | `RISExStrategy` | `RISExLiquidationStrategy` | | **Mechanism** | Deposits USDC collateral to RISEx and places limit orders on perpetual markets, earning yield through market-making activity. | Acts as the Remaining Liquidity Provider, absorbing positions from liquidated traders. | | **Key operations** | Deploys funds as collateral, places keeper-managed limit orders, harvests equity back to the vault, and withdraws collateral subject to safety checks. | Takes over cross and isolated positions from bankrupt accounts, transfers absorbed positions to the market-making strategy, and closes them with reduce-only orders. | ## Epochs XLP operates on **12-hour epochs**. Deposits and withdrawals are queued and take effect when the next epoch settles. ## Deposits 1. Your deposit lands in the **idle queue instantly** (credited as **XLPUSDC shares**). 2. It becomes **effective at the next epoch** (epochs settle every **12 hours**). 3. You can **cancel a pending deposit** any time before that epoch settles. While in priority access, deposit from the **Vault** tab in your RISEx UI. Public deposits via [vault.rise.trade](https://vault.rise.trade/) open at public launch. ## Withdrawals (redeem) Withdrawing means **redeeming** your XLPUSDC shares back to USDC in your RISEx account. Redeems are batched into epochs and settled by a keeper: 1. **Request a redeem.** Your shares enter the queue ("Awaiting settlement"). You can **Cancel Redeem** any time before it settles. 2. **Epoch settlement.** Redeems are settled periodically by a keeper (about **12 hours**). 3. **Cooldown.** After settlement, an additional on-chain lock (about **12 hours**) applies before you can **claim your USDC**. End to end, a redeem takes up to about **24 hours** (epoch settlement plus the cooldown). Withdrawals are sourced from idle USDC first, then from the strategies in queue order (`xlp_mm`, then `xlp_rwa`, then `xlp_insurance`). ## Epoch-based withdrawal protection Epoch-based withdrawal protection prevents a single large withdrawal from dropping the vault's TVL between harvests. * Each epoch starts when a harvest occurs. * During an epoch, only **10% of total pool TVL** can be withdrawn. * Once the 10% limit is reached, withdrawals are blocked until the next epoch. * Withdrawals are processed **FIFO**. There is no priority queue. **Example:** the vault holds 100k USDC and someone deposits 50k, so the pool is 150k USDC. The maximum withdrawable this epoch is 15k (10% of 150k). ## Risk XLP is **not a delta-neutral product**. It is exposed to market conditions and will see drawdowns. Deposit with that understanding. ## Resources * [Yearn V3 Vault Docs](https://docs.yearn.fi/developers/smart-contracts/V3/VaultV3) * [Yearn V3 TokenizedStrategy](https://docs.yearn.fi/developers/smart-contracts/V3/TokenizedStrategy) * [Security audit by yAudit](https://drive.google.com/file/d/1hfppdkxBYTiXbfinJ2fP70Z6iQKf-HEd/view)