❓FAQ

General FAQ

1. How do I deposit into the vaults?

Refer to our comprehensive user guide available on our official website under the "Easy Guide 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.

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 infra. 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.

Most of products are in Drift Vaults and Drift are well audited by 3 companies.

https://www.drift.trade/audit https://github.com/drift-labs/audits/blob/master/drift-vaults/neodyme.pdf

https://www.drift.trade/connect-by-drift-security-audit-by-ottersec

https://cdn.prod.website-files.com/6310e7dee49f0866da8eed4c/6686bbdfe7c6e5a997cc51bc_Neodyme%20-%20Drift%20Security%20Audit.pdf

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. The trading authority is isolated and monitored by the keeper program to prevent malicious trading.

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, 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 APY displayed on the Drift and PrimeNumber Dapp platform is net of fees. For other promotional materials, the yield figures will be clearly indicated as either gross or net of applicable fees.

For example, on the Drift Vault page, the APY figure displayed numerically is net of fees, while the yield data shown in charts represents the gross amount before fees are deducted.

15. How can I contact customer support?

You can reach our customer support team by sending an email to [e-mail]. 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.

JLP Hedge Vault (also SOL Alpha Vault, Bit Wealth Vault)

1. What is the approximate upper limit of the capital capacity for the JLP Hedge Vault's arbitrage strategy?

We currently estimate the upper limit of the capital capacity for the JLP Hedge Vault's arbitrage strategy to be approximately $50 million. The current (2025.9) TVL of JLP is around $2 billion. Due to the existence of competing similar strategies in the market, the total assets under management (AUM) of all managers engaged in JLP neutral strategies across the market is approximately $100 million, which becomes around $200 million after leverage. This means that under the maximum capacity estimate, our own strategy will account for no more than 10% of JLP's TVL, and the entire market will not exceed 25%.

2. What are the main sources of the product's net value fluctuations?

The net value fluctuations of the product mainly stem from two core factors:

• Firstly, JLP has a primary market subscription/redemption price and a secondary market trading price, and the premium or discount between the two will deviate, thereby causing net value fluctuations.

• Secondly, since JLP's exposure changes in real-time with platform transactions, we adopt dynamic hedging to balance transaction costs and yield. Instantaneous changes in exposure may cause fluctuations, but overall, these fluctuations are neutral and have a neutral impact on the vault in the long run.

3. What are the key considerations regarding risk control?

Risk control is mainly considered from several aspects:

• Firstly, for risks related to market volatility and delta changes, we use a proprietary model for backtesting and experiment with different rolling hedging strategies to minimize the impact of tail delta mutations.

• Secondly, risks such as liquidation and oracle issues mainly depend on the exchange's mechanism. Since the liquidation price is based on an external oracle and the underlying assets are all mainstream assets, such risks are relatively small.

• Finally, regarding the permission control of the trading and management team, we have no right to transfer assets. The vault is designed as a self-custody model, with trading permissions isolated and a keeper program equipped for monitoring to prevent malicious transactions.

4. What is the core of the strategy's profitability, and who is the source of the profits?

The core of profitability is that, as a liquidity provider for JLP, we earn the real transaction fee income generated by the Jupiter trading platform.

5. What are the main advantages or differences between your dynamic hedging strategy and similar strategies on the market?

Our main advantages lie in the proprietary model and refined risk control:

• We use a proprietary model for backtesting and dynamic hedging, optimizing the model's prediction accuracy and hedging efficiency to better balance hedging costs and returns.

• Meanwhile, we have a deeper understanding and response measures for in-depth risks such as "tail delta mutations," which goes beyond simple delta-neutral hedging and enhances the long-term stability of the strategy.

• Moreover, we utilize a specialized integrated futures-spot hedging model that helps reduce both leverage and hedging costs while maintaining effective risk exposure control.

6. Does the strategy's profitability depend on a bull or bear market? What are its requirements for market volatility?

The strategy is ideally market-neutral, and its returns mainly come from the actual trading volume of the Jupiter platform, rather than the one-sided rise or fall of SOL or related asset prices. Generally, higher market volatility will bring greater trading volume and hedging demand, which may be beneficial to the strategy's returns. However, our strategy will dynamically adjust to adapt to different market environments.

7. How does the strategy respond under extreme market conditions (such as flash crashes, sudden liquidity freezes)?

Under extreme market conditions, our risk control system will activate response mechanisms:

• We are equipped with a Keeper program for real-time monitoring. When market volatility reaches a predefined extreme threshold, the system will trigger an automatic position reduction or a circuit breaker mechanism to suspend hedging, so as to control losses.

• Our model has also undergone stress testing against historical extreme market conditions to ensure its robustness.

8. Do you use quantitative trading?

Yes, we use quantitative trading. We automatically calculate the delta exposure 24/7 and execute hedging through algorithmic trading.