FAQ
General FAQ
1. How do I deposit into the vaults?
Refer to our comprehensive user guide available on our official website under the "How to Use" section. It provides step-by-step instructions to ensure a smooth deposit process into the vault of your choice.
2. What is the minimum deposit amount for the vaults?
The minimum deposit requirement varies depending on the specific vault. You can find the exact figure displayed prominently on the individual vault page within your PrimeNumber Trade account dashboard.
3. Can anyone other than me withdraw funds from the vault?
No. The vault contracts are designed with strict security measures. Only you, as the account holder, have the authorization to initiate and complete withdrawals. Our traders and platform administrators do not have the ability to withdraw assets on your behalf. You maintain complete control and custody of your deposited funds at all times.
4. When are fees charged?
Fees are assessed either on a monthly basis or at the time of your withdrawal from the vault. This ensures a clear and transparent fee structure, allowing you to easily understand the costs associated with your investment.
5. Are the vaults audited?
We do not directly operate the vault. Instead, we collaborate with leading DEX platforms to execute our strategies on platforms that have undergone audits and are used by a large number of users for their funds.
For JLP Hedge Vault and LST Hedge Vault,products are in Drift Vaults and Drift are well audited by 3 companies.
https://www.drift.trade/connect-by-drift-security-audit-by-ottersec
6. Are there any lock-up periods?
To prevent market manipulation and ensure the stability of our strategies, there is a maximum lock-up period of 24 hours for withdrawals from the vault. This allows us to manage the flow of funds and maintain the optimal performance of the vaults.
7. What if my position in vault is at risk of liquidation?
Our risk management systems are designed to minimize the likelihood of liquidation. We employ advanced hedging techniques and continuous monitoring to adjust positions in real-time. Wwe have multiple layers of protection. Our algorithms are calibrated to respond to market changes promptly, and we maintain sufficient collateral buffers to withstand short-term market fluctuations. Additionally, we have a dynamic deleveraging mechanism that kicks in when certain risk thresholds are breached, reducing the exposure and protecting your investment.
8. What if the hedge positions in my vault move unfavorably? Will it lead to liquidation?
No. Our strategies are designed to account for such scenarios. Even if the hedge positions experience significant movements, we have built-in safeguards. For instance, in the case of our JLP hedge vault, the underlying assets and collateral are structured in a way that they tend to move in tandem or offset each other's risks. This means that as the hedge positions change, the value of the collateral also adjusts, maintaining the overall stability of the position and minimizing the risk of liquidation.
9. Can the platform engage in any unethical trading practices to manipulate prices?
Absolutely not. PrimeNumber Trade operates with the highest ethical standards. Our trading algorithms and strategies are designed to execute trades within the parameters of the market and the available liquidity. We do not have the ability to manipulate low-liquidity or any assets. Our focus is on implementing sound investment strategies to generate legitimate returns for our users.
10. Can I face liquidation in the vault?
Liquidation is highly unlikely. Our team of experienced quants and traders actively manage risk. In the event of any potential risk to your position, we have predefined protocols in place. For example, in the [Vault Name], if certain risk indicators, such as the health factor, approach critical levels, we will take proactive measures like rebalancing the portfolio, adjusting leverage, or converting assets to more stable forms to protect your investment and avoid liquidation.
11. What are the risks associated with using the vaults?
We have detailed the risks in a comprehensive article available on our website under the "Risk Disclosure" section. These risks include market volatility, potential changes in interest rates, and the inherent risks associated with the underlying assets and strategies. It is important that you read and understand these risks before investing in any of our vaults.
12. How do you achieve the promised yields?
Our yields are achieved through a combination of strategies. For example, in the JLP hedge vault, we optimize the use of assets such as JLP underlying and hedging perps. We earn fees from trading activities, lending, and other financial operations within the DeFi ecosystem. The yields are modeled based on historical data and market conditions, but it's important to note that they are subject to change depending on market dynamics.
13. How sustainable are the current yields, and what can cause fluctuations?
The sustainability of the yields depends on several factors. The trading volume and activity within the DeFi platforms we interact with play a significant role. If there is a decrease in trading activity, it could impact the fees we earn and, consequently, the yields. Additionally, changes in market conditions, such as fluctuations in cryptocurrency prices, interest rate changes, and regulatory developments, can also cause significant fluctuations in the yields.
14. Are the advertised yields gross or net of fees?
The yields we advertise are gross of fees. This means that the actual returns you receive will be the yield minus any applicable fees, which are charged as per our fee schedule described earlier.
15. How can I contact customer support?
You can reach our customer support team by sending an email to primenumber.blockchain@ud.me or by using the live chat feature available on our website. Our support team is available during business hours to answer any questions or concerns you may have regarding our vaults or any other aspect of the PrimeNumber Trade platform.
Last updated