> For the complete documentation index, see [llms.txt](https://aionet.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aionet.gitbook.io/docs/products/hbtc-vault/how-your-vault-works.md).

# How Your Vault Works

The BTC / USDC Grid Vault is designed around a simple idea:

> **Use market movement to buy BTC lower and sell BTC higher - automatically.**

You deposit **USDC** into your Vault. From there, the system manages a combination of **BTC and USDC**, buying and selling as the BTC price moves.

When the total value of your Vault grows above your original deposit, the difference is your **profit**.

You can **claim that profit** while leaving your original deposit in the Vault to continue working.

***

## The Big Picture

The entire process can be understood in 6 simple steps:

**1. Deposit USDC**\
↓\
**2. Your Vault starts approximately 50% BTC / 50% USDC**\
↓\
**3. The strategy buys BTC lower and sells BTC higher**\
↓\
**4. Your Vault value changes as the strategy operates**\
↓\
**5. Anything above your original deposit is profit you can claim**\
↓\
**6. When you want to exit: Claim → Withdraw**

***

## 1. You Deposit USDC

Everything starts with your deposit.

You send **USDC into your own Vault**.

For example:

|              |          Amount |
| ------------ | --------------: |
| Your deposit | **$1,000 USDC** |

This **$1,000 becomes your deposit reference**.

It is the line used to determine whether your Vault currently has profit available to claim.

> **Remember this**
>
> Your deposit is the reference point for calculating your profit.

***

## 2. Your Vault Starts Around 50 / 50

After your deposit, approximately half of the USDC is converted into BTC.

So if you deposit **$1,000**, your Vault initially looks approximately like this:

| Asset                 | Approximate Value |
| --------------------- | ----------------: |
| BTC                   |              $500 |
| USDC                  |              $500 |
| **Total Vault Value** |        **$1,000** |

This gives the strategy both assets it needs to operate.

It has **BTC available to sell when price rises** and **USDC available to buy BTC when price falls**.

***

## 3. The Vault Buys Low and Sells High

This is the core philosophy of the Vault.

The strategy follows BTC price movements and automatically reacts when price moves through its grid levels.

#### When BTC moves down

The Vault uses some of its **USDC to buy BTC**.

**Price ↓ → Buy BTC**

#### When BTC moves up

The Vault sells some of its **BTC for USDC**.

**Price ↑ → Sell BTC**

Then the process continues as the market moves.

> **The basic idea**
>
> **Buy lower → Sell higher → Repeat**

You don't need to manually place each trade.

The strategy manages this process automatically.

***

## 4. Your Vault Changes Over Time

Your Vault does not remain permanently 50% BTC and 50% USDC.

The 50/50 split is approximately how the Vault **starts**.

After that, the balance between BTC and USDC changes naturally as the strategy buys and sells.

For example:

* When BTC price moves down, the Vault may accumulate more BTC.
* When BTC price moves up, the Vault may sell BTC and accumulate more USDC.

This is normal.

The important number for you is the **total value of your Vault**.

***

## Your Deposit vs Your Profit

This is the most important concept to understand.

Your Vault has a **deposit reference**.

Anything the Vault is worth **above that reference** is considered profit.

#### Example

You deposited:

**$1,000**

Later, your Vault is worth:

**$1,150**

Therefore:

|              |    Value |
| ------------ | -------: |
| Vault Value  |   $1,150 |
| Your Deposit |   $1,000 |
| **Profit**   | **$150** |

The **$150 above your deposit is claimable profit**.

***

### Think of it like this

| Your Vault                |                                           |
| ------------------------- | ----------------------------------------- |
| 🟡 **PROFIT**             | Everything above your deposit - claimable |
| — **YOUR DEPOSIT LINE** — | $1,000 in our example                     |
| 🔵 **YOUR DEPOSIT**       | Remains working inside the Vault          |

The system separates the idea of **your deposit** from the **profit generated above it**.

***

## What If My Vault Is Below My Deposit?

There is simply **nothing to claim at that moment**.

For example:

|                     |  Value |
| ------------------- | -----: |
| Your Deposit        | $1,000 |
| Current Vault Value |   $950 |
| Claimable Profit    | **$0** |

Your deposit reference remains **$1,000**.

If the Vault later moves back above that level, the amount above your deposit becomes claimable profit again.

> **Important**
>
> A profit claim only comes from value **above your deposit**.

***

## 5. Claim Your Profit

When your Vault has value above your deposit, you can **claim the profit**.

You do not need to close your Vault to do this.

#### Example

Imagine:

**Deposit:** $1,000\
**Vault Value:** $1,200

Your claimable profit is:

**$200**

When you claim, the profit is distributed according to your membership tier.

Your deposit remains in the Vault and can continue working.

***

## Claim Does Not Mean Exit

This distinction is very important.

#### CLAIM

You take the available **profit**.

Your deposit stays in the Vault.

The Vault can continue operating.

#### WITHDRAW

You are taking your **deposit back** and closing the Vault.

So:

> **Claim = Take Profit**
>
> **Withdraw = Exit the Vault**

***

## How Your Claimed Profit Is Split

The profit distribution depends on your NFT tier.

| Tier      |     You | Sponsor | Treasury |
| --------- | ------: | ------: | -------: |
| **Nomad** | **75%** |     10% |      15% |
| **Pro**   | **80%** |     10% |      10% |
| **Royal** | **85%** |     10% |       5% |

***

### Example: Royal Member

Imagine your Vault has **$200 of claimable profit**.

As a **Royal** member, the split is:

|                  |    Share |  Example |
| ---------------- | -------: | -------: |
| **You**          |  **85%** | **$170** |
| Sponsor          |      10% |      $20 |
| Treasury         |       5% |      $10 |
| **Total Profit** | **100%** | **$200** |

The example uses dollar values only to make the percentages easy to understand.

***

## How Is a Claim Paid?

When profit is claimed, the Vault pays it using:

**BTC first**

and, if there isn't enough BTC available to cover the required amount:

**USDC is used for the remainder.**

So the settlement priority is:

**BTC → USDC if needed**

***

## Your Deposit Keeps Working After a Claim

This is one of the key ideas behind the Vault.

You don't necessarily need to choose between:

**taking profit**

and

**continuing the strategy.**

You can claim the profit that has accumulated **above your deposit**, while leaving the deposit inside the Vault.

#### Example

You start with:

**$1,000 deposit**

Your Vault later reaches:

**$1,200**

You have:

**$200 profit**

You claim that profit according to your tier.

Your deposit remains in the Vault and continues participating in the strategy.

If new profit is generated later, it can become claimable again.

***

## 6. How to Exit Your Vault

When you eventually want to leave the Vault completely, there are **two steps**.

#### Step 1 - Claim

First, claim any available profit.

#### Step 2 - Withdraw

Then withdraw your deposit.

The Vault is then closed.

> **The correct order is always:**
>
> **CLAIM → WITHDRAW**

You cannot withdraw while profit is still waiting to be claimed.

This keeps the two actions clear:

**Claim handles profit.**

**Withdraw handles your deposit and closes the Vault.**

***

## A Complete Example

Let's put everything together.

### You deposit $1,000

Your starting Vault is approximately:

|                 |      Value |
| --------------- | ---------: |
| BTC             |     \~$500 |
| USDC            |     \~$500 |
| **Vault Value** | **$1,000** |

Your deposit reference is:

**$1,000**

***

### The strategy starts working

As BTC moves:

**BTC moves lower → the Vault buys BTC**

**BTC moves higher → the Vault sells BTC**

The process repeats as the market moves through the strategy's grid levels.

***

### Your Vault reaches $1,200

Now:

|             |    Value |
| ----------- | -------: |
| Vault Value |   $1,200 |
| Deposit     |   $1,000 |
| **Profit**  | **$200** |

You now have **$200 of claimable profit**.

***

### You decide to claim

If you are **Royal**, the $200 profit is split:

|               |   Amount |
| ------------- | -------: |
| You - 85%     | **$170** |
| Sponsor - 10% |      $20 |
| Treasury - 5% |      $10 |

Your claim is paid **BTC first**, with USDC used if needed.

Your deposit remains in the Vault.

***

### The Vault continues

You do not need to close the Vault just because you claimed profit.

Your deposit can continue participating in the strategy.

If the Vault generates new value above your deposit again, that becomes new claimable profit.

***

## The Vault Philosophy

The Vault is easier to understand when you separate it into **three concepts**:

| Concept         | What it means                                     |
| --------------- | ------------------------------------------------- |
| 💰 **Deposit**  | The capital you put into the Vault                |
| 📈 **Strategy** | Automatically buys BTC lower and sells BTC higher |
| 🟡 **Profit**   | Value generated above your deposit                |

From there, you have two main actions:

| Action       | Purpose                         |
| ------------ | ------------------------------- |
| **Claim**    | Take available profit           |
| **Withdraw** | Take your deposit back and exit |

***

## Frequently Asked Questions

#### Do I need to trade BTC myself?

No. The strategy handles the buying and selling process automatically.

***

#### Does my Vault always stay 50% BTC and 50% USDC?

No.

The Vault **starts approximately 50/50**.

After that, its BTC and USDC balance changes as the strategy buys and sells.

***

#### How is my profit calculated?

Your profit is the value of the Vault **above your original deposit**.

For example:

**$1,150 Vault Value − $1,000 Deposit = $150 Profit**

***

#### Can I claim my profit without closing the Vault?

Yes.

Claiming profit and withdrawing your deposit are separate actions.

You can claim profit while leaving your deposit in the Vault.

***

#### What happens to my deposit when I claim?

Your deposit remains in the Vault and continues participating in the strategy.

***

#### What happens if my Vault is worth less than my deposit?

There is no claimable profit at that moment.

Profit only exists when the Vault value is above your deposit reference.

***

#### Can a claim take money from my deposit?

No.

A claim applies to the value **above your deposit**.

***

#### How often can I claim?

The Vault flow allows profit to be claimed **anytime** when claimable profit is available.

***

#### Is there a maximum profit I can claim?

The described Vault flow does not set a claim ceiling. A claim takes the profit available above your deposit.

***

#### What currency do I receive when I claim?

The claim is paid in **BTC first**.

If the Vault's available BTC cannot cover the required payout, **USDC is used for the remainder**.

***

#### Where does the rest of the claimed profit go?

It depends on your tier.

**Nomad:** 75% You / 10% Sponsor / 15% Treasury

**Pro:** 80% You / 10% Sponsor / 10% Treasury

**Royal:** 85% You / 10% Sponsor / 5% Treasury

***

#### How do I completely exit the Vault?

First **claim any available profit**.

Then **withdraw your deposit**.

**Claim → Withdraw → Vault Closed**

***

## Quick Summary

If you remember only a few things, remember these:

> **1. Deposit USDC**
>
> Your deposit becomes the reference point for your profit.

> **2. The Vault starts approximately 50% BTC / 50% USDC**
>
> This allows the strategy to buy and sell as BTC moves.

> **3. Buy lower, sell higher**
>
> The strategy automatically trades between BTC and USDC.

> **4. Profit is everything above your deposit**
>
> If your deposit is $1,000 and your Vault is worth $1,150, the $150 difference is profit.

> **5. Claiming profit does not close your Vault**
>
> Your deposit remains and can continue working.

> **6. When you want to leave**
>
> **Claim first → Withdraw second.**

***

### In One Sentence

**Deposit USDC → let the Vault automatically buy BTC lower and sell BTC higher → claim value generated above your deposit → keep your deposit working, or withdraw it when you're ready to exit.**