System Overview¶
The Vault-K-NO is a structured yield protocol. Investors deposit USDC once and earn continuous yield derived from prediction market NO share positions.
Core Concept¶
A prediction market binary option has two outcomes — YES and NO. When the vault buys NO shares at a price below $1.00 (e.g. $0.93), it locks in a known spread: if the market resolves NO, every share redeems at $1.00. The spread between purchase price and $1.00 is the vault's gross yield on that position.
The vault holds up to four simultaneous positions across different binary markets, rolling capital from settled markets into new ones. There is no vault maturity — the cycle repeats indefinitely.
Investor Experience¶
- Deposit USDC — receive vault shares at the current modeled share price
- Accrue — share price rises as positions accrue toward $1.00 over their lifecycle
- Withdraw on a curve — request withdrawal, join FIFO queue, receive USDC minus 0.5% liquidity fee
Key Properties¶
| Property | Description |
|---|---|
| Continuous | No end date. Capital rolls from one market cycle to the next indefinitely. |
| Asynchronous redemption | Withdrawals are queued and processed by a permissioned keeper, not instant. |
| Curve-priced exits | Exit price depends on daily redemption fill — early redeemers get better prices. |
| Observable | All positions, NAVs, queue depth, and pricing logic are on-chain and readable. |
| Single user contract | Investors only interact with LiquidityVault. All complexity is internal. |
Document Map¶
- Architecture — the three contract types and their roles
- Lifecycle — how cycles overlap and the vault remains evergreen
- Position Registry — the four-slot internal position store
- System Parameters — all protocol constants
- Redemption Curve — the quadratic exit pricing formula
- Pause Condition — when withdrawals halt automatically