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Phase 0: Vault Creation

These steps assume a VaultFactory has already been deployed and configured with valid vault and adapter types.
Vault creation is a three-step process:
  1. createAdapter(adapterTypeId, poolAddress, data) — Deploys and initializes an adapter for a specific Uniswap V3 pool
  2. createVault(vaultTypeId, adapterAddress) — Deploys a vault; caller must own the adapter, and the adapter must not already be linked to a vault
  3. initializeVault(vaultId, fixedSideCapacity, variableSideCapacity, duration, variableAsset, expectedFeeBps) — Sets the vault parameters and binds the adapter
Only the factory owner can perform these actions.

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Phase 1: Depositing

Two deposit paths exist: fixed side and variable side.

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Fixed Side

vault.deposit(amount, FIXED, deployCapitalData)
  • The amount must be 0 — token amounts are derived from fixedSideCapacity and current pool price
  • deployCapitalData encodes slippage protection (amount0Min, amount1Min) and a transaction deadline
  • Adapter mints a Uniswap V3 LP position; depositor receives 1 claimToken
  • There is only one fixed side depositor per vault

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Variable Side

vault.deposit(amount, VARIABLE, deployCapitalData)
  • Mints variableBearerToken 1:1 with the deposit
  • deployCapitalData optionally encodes a minimum accepted amount (for partial fills near capacity)
Balances are tracked against fixedSideCapacity and variableSideCapacity.

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Phase 2: Vault Start

Once both sides reach capacity, the vault starts automatically.

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Phase 3: Earning Period

The Uniswap V3 position accrues trading fees for the configured duration. No withdrawals are permitted during this phase. After the vault starts, the fixed side depositor may claim their premium: vault.claim()
  • Transfers a proportional share of variable side deposits (the fixed premium) to the caller
  • Burns the caller’s claimToken and mints an equivalent fixedBearerToken
  • Can be called at any time after the vault starts

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Phase 4: Settlement and Withdrawal

Once maturity is reached, the first withdrawal triggers settleEarnings() and mints the protocol fee (in variableBearerToken to the vault for the current feeReceiver()).

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Fixed Side

vault.withdraw(FIXED, removeLiquidityData)
  • Removes all liquidity from Uniswap V3 and returns the underlying tokens (token0 and token1) to the depositor

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Variable Side

vault.withdraw(VARIABLE, "")
  • Returns a proportional share of the Uniswap trading fees collected during the vault’s lifetime, minus the protocol fee