FAQs

Q: What do I receive when I withdraw from a Vault?

A: You will receive the same type of asset you deposited, but the quantity will have changed. Specifically, you will receive your initial LP tokens (or the equivalent underlying assets), plus all the compounded earnings that have been added to your principal.

Q: How often does the vault harvest rewards and rebalance its position?

A: There is no fixed schedule. The vault's strategy is dynamic; it determines the optimal time to act based on market conditions, gas fees, and the amount of accumulated rewards. The goal is to maximize returns after costs, so this could happen several times a day or just once a day.

Q: Is the APY displayed for Vaults fixed? Why does it keep changing?

A: The APY is dynamic and not guaranteed. It is an estimated value based on historical performance (including trading fees and farming rewards) and calculated with compounding. APY fluctuates in real-time due to changes in market trading volume, token prices, and liquidity mining rewards. Past APY is not indicative of future returns.

Q: Why has the total value of my vault position decreased?

A: This could be due to a few reasons:

1. Impermanent Loss (IL): This is the most common reason. When the relative price of the two tokens in the pool changes significantly, the value of your LP position might be lower than if you had simply held the two tokens separately.

2. Decreased Yield: If market activity is low, the income from trading fees and farming rewards may decrease, potentially failing to offset the impermanent loss.

Q: Are Nemo Vaults non-custodial? Can the Nemo team access my funds?

A: Yes, Nemo Vaults are fully non-custodial. Your assets are managed by publicly verifiable smart contract code. The Nemo team cannot unilaterally move, freeze, or access your funds. You always maintain ultimate control over your funds and can initiate a withdrawal at any time according to the contract rules.

Q: I'm from a project team. How can we partner with Nemo to launch an official vault?

A: We warmly welcome partnerships with outstanding projects in the Sui ecosystem! Please contact our business development team through our official Discord or Twitter. We can discuss creating dedicated vaults for your project's token or LP, potentially even with additional Sui incentives.