Deposit & Withdraw Lock-Up Period
Last updated
Last updated
Within a Knightrade Vault, the Lock-Up Period (generally spanning 3 to 7 days) defines structured intervals when all activities (e.g., deposits, withdrawals, and fee computations) are executed and completed. These regulated periods play a crucial role in maintaining smooth and transparent vault operations, establishing a systematic environment benefitting investors and vault traders alike.
Each cycle consists of two distinct phases: the Current Epoch and the Settlement Epoch.
This is the initial phase of the cycle where the vault collects requests from investors:
Deposits: Investors submit requests to purchase additional vault units by committing their investment amount.
Withdrawals: Investors who wish to exit or partially withdraw their investments submit withdrawal requests.
Requests during this period are queued and processed at the conclusion of the current epoch.
Once the current epoch ends, the settlement epoch begins. During this phase:
The vault calculates the updated Net Asset Value (NAV) by assessing the total assets under management (AUM), accounting for market fluctuations, new deposits, and withdrawals.
NAV = (AUM - Total of Fee) / Total of Supply
All related fees, such as management fees, performance fees, or platform costs, are calculated and deducted based on the terms outlined in the vault's agreement.
Deposits: Vault tokens are allocated to investors who have requested deposits. This is based on the finalized NAV.
Withdrawals: Payments are distributed to investors who have submitted withdrawal requests. This ensures fair and accurate fulfillment based on the NAV.
For detailed instructions on current epoch and settlement epoch, please consult the section in User Manuals.
Once the settlement epoch concludes:
The updated NAV and vault performance metrics are published and made available to all investors for transparency.
Confirmation of deposits and withdrawals transactions is sent to respective investors.
After the completion of the settlement epoch, the vault transitions into the next current epoch.
This cyclical process allows for continuous investor participation while maintaining an organized structure for vault operations.
The structured approach ensures that all investor requests are handled in a timely and transparent manner while maintaining operational efficiency.
Investors are provided with clear updates on vault performance, NAV changes, and fee deductions at the end of each Settlement Cycle.
All transactions are processed based on the same NAV calculation at the end of the settlement epoch, ensuring fairness for all investors.
By aligning deposits and withdrawals within the cycle, the vault can manage liquidity effectively while safeguarding the interests of existing investors.
Knightrade's Lock-Up Periods are designed to balance investor flexibility with the vault's operational stability, ensuring that all participants are treated equitably and that the vault's strategy remains aligned with its objectives.
Efficiency
Transparency
Fairness
Liquidity Management
