How a fund works

A fund declares its assets and a target weight for each, in basis points (1 bp = 0.01%). The weights must add up to exactly 10,000 — 100% — for the fund to exist. In the app a basket has between 2 and 10 assets; the contracts themselves allow up to 20.

USDC can be one of the assets. A fund can also keep USDC declared at 0% as a cash sleeve: a place to settle redemptions that the next rebalance spends back into the basket.

Each asset sits in a token account owned by the vault’s program address. Nobody holds a private key for it. Tokens leave the vault only through program instructions:

• a redemption, which pays every asset out pro rata to the person redeeming;
• a rebalance, which can only swap one declared asset of the fund into another declared asset of the same fund;
• the protocol’s emergency instructions, described in Security and trust.

The creator has no instruction that sends the vault’s tokens to a wallet.

Shares are an SPL token minted by the vault. Owning 1% of the shares in circulation means owning 1% of every token in the vault. Shares sit in your app wallet next to your USDC and SOL.

At launch, the creator’s app wallet pays a seed (currently 0.1 USDC). The seed mints a locked seed share held by a program account. It cannot be redeemed while the fund is live, and it is left out of every share-price calculation. It exists so that the first depositor of a fund cannot manipulate the share price against everyone after them. The protocol can recover it only when the fund is being wound down and nobody else holds a share.

Targets are what the fund promises to hold; holdings are what it holds right now. Prices move every day, so holdings drift away from targets. A fund’s page shows both, and the creator brings them back together by rebalancing (see Rebalancing and editing). Deposits and redemptions always follow the holdings, not the targets: that is what keeps them fair to everyone already in the fund.

The wallet that launched a fund is its admin. It can rebalance, change the basket and weights, set the fund’s policy, and hand the admin role to another wallet (a two-step transfer: the new admin has to accept). It earns its share of every entry and exit fee. It cannot change the fees, pause the fund or close it — those are protocol powers.