How it Works
Details Regarding the Vault of Ashley
What is the Vault of Ashley?
The Vault of Ashley operates similarly to a traditional hedge fund, with its operations and parameters governed by a publicly verified smart contract. The fund utilizes user-deposited Sonic (S) blockchain tokens within the Sonic ecosystem by employing various protocols and growth strategies to generate profit.
Key Features:
Share Allocation: Users who deposit funds into the Vault of Ashley receive shares as a receipt of their deposited funds. These shares can be withdrawn partially or in full at any time, allowing users to retrieve their Sonic tokens along with any accrued profits or losses.
Who Controls the Fund?
Tristan Nettles Tristan Nettles, an American citizen with a B.S. in Biology and over seven years of experience, serves as the current fund manager of the Vault of Ashley. Tristan has been actively involved in cryptocurrency investing since 2017 and has worked as a full-stack engineer for the past four years.
How Does It Work?
Users can deposit funds into the Vault of Ashley directly using Sonic tokens or via credit/debit card.
Direct Deposits:
Users depositing directly into the vault receive the corresponding amount of shares immediately.
Card Deposits:
Users who pay using a card must wait for their funds to be transferred from their financial institution to ours.
Once received, the fiat currency is converted into Sonic tokens and deposited into the vault by our vault manager.
Depositors using this method must request their shares be withdrawn into funds from the vault manager when seeking to make withdrawals. The withdrawal, minus any fees, will then be sent to the depositors centralized exchange address, or web3 wallet address, of their choice.
Depending on the payment type and financial institution used, this process can take up to seven days before shares are received.
Share Tracking:
After making a deposit, users receive shares that are tracked on their dashboard.
These shares serve as receipts for withdrawing funds.
Investment Allocation:
80% of Sonic Tokens: Invested throughout the Sonic blockchain into various protocols using different strategies.
20% of Sonic Tokens: Kept in the vault to meet user withdrawal demands, similar to traditional banking practices.
Share Price Fluctuation:
The value of invested Sonic tokens may increase or decrease.
Profits: Share prices rise, allowing users to receive more Sonic tokens than initially invested.
Losses: Share prices decline, resulting in users receiving fewer Sonic tokens upon withdrawal.
Withdrawal Process:
Users can withdraw their shares partially or in full at any time.
Share Stability: The number of shares remains constant regardless of market conditions; only the price per share fluctuates.
Automated Withdrawal Handling:
Withdrawals are managed by the smart contract in the order received.
Insufficient Liquidity Scenario:
If the vault lacks sufficient liquidity to fulfill a withdrawal request, the user is added to a queue.
A notification is sent to the hedge fund manager informing them that the vault has fallen below the 20% liquidity threshold.
The hedge fund manager will rebalance the vault within 12 hours and execute the
approveWithdrawsfunction.This function will disperse all outstanding withdrawals in the order they were received until all shares are accounted for.
User Risks
Market Losses:
As with any investment, there is a risk of losses.
Users who withdraw shares during market downturns may receive fewer funds than initially invested.
Smart Contract Risks:
Despite rigorous security measures, smart contracts are susceptible to hacks or exploits.
Such incidents can result in the loss of user funds.
Last updated