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  • 🧭Navigation
  • 🦙Alpaca Finance
  • Our Protocol
    • 🏆Our Products
    • 📈How to Participate
      • Introduction to Six Simple Strategies to Earn
      • Strategy 1: Hold a Token While Earning High Yields at Low Risk; aka Lend & Stake
      • Strategy 2: Hold a Token Pair to Earn Auto-Compounded Yields Without Leverage
      • Strategy 3: Supercharge Your Stablecoin Yields
      • Strategy 4: Multiply Crypto Gains in a Bull Market
      • Strategy 5: Yield Farm Profitably in a Bear Market
      • Strategy 6: Multiply Crypto Gains in Any Market by Hedging
    • 🗺️Roadmap
    • 🔒Security
    • 📃Transparency (Audits & Contracts)
    • 🔗Links
    • 📰Media Coverage
    • ❤️Charity
    • 🌐Global Protocol Parameters
      • ⏫Leveraged Yield Farming Parameters
      • 📈AF1.0 Interest Rate Model
      • 📖Automated Vault Parameters
      • 📗Perpetual Futures Exchange Parameters
      • 📙AF2.0 Parameters
  • Tokenomics
    • 📀ALPACA Token
    • 💰ibTokens
    • ⚖️Pool Allocations
    • 🔥Proof of Burn
      • Burn Sources Details
  • Lending
    • 🏦Introduction to Lending
    • ❗Risks
    • ⏭️Step-by-Step Guide
      • Lend & Stake
      • Withdraw
  • Leveraged Yield Farming
    • 🚀Introduction to Leveraged Yield Farming
    • 🏊Pool-Specific Parameters
      • PancakeSwap Pools
      • Mdex Pools
      • Biswap Pools
      • SpookySwap Pools (Deprecated)
      • WaultSwap Pools (Deprecated)
    • 🧮Leveraged Yield Farming Mechanics
      • PancakeSwap Farms
      • Mdex Farms
      • Biswap Farms
      • SpookySwap Farms (Deprecated)
      • WaultSwap Farms (Deprecated)
    • 🌊AF1.0 Liquidation
    • ❗Risks
    • ⏭️Step-by-Step Guide
      • Open a Leveraged Yield Farming Position
      • Adjust a Leveraged Yield Farming Position
      • Close/Partially Close a Leveraged Yield Farming Position
      • Claim Rewards
      • Liquidate Positions
  • Automated Vaults
    • ⚙️Introduction to Automated Vaults
      • Market-Neutral Strategy
      • Savings Vault Strategy
    • 🧮Hedging Mechanics
    • ⏬Lowering Vault Leverage Mechanics
    • 🔏Private Automated Vault
    • 📈Backtest Results
    • ❗Risks
    • ⏭️Step-by-Step Guide
      • Invest in an Automated Vault
      • View Your Automated Vault Position
      • Withdraw from the Automated Vault
  • Perpetual Futures Exchange
    • 🔮Introduction to Perpetual Futures Exchange
      • Traders
      • Liquidity Providers
    • 🚀Launch Plan
    • 💲Trading Fee Discount Program
    • 🎁Referral Program
    • ❗Risks
    • ⏭️Step-by-Step Guide
      • Open a Leveraged Position
      • Manage a Leveraged Position
      • Close a Leveraged Position
      • Swap Asset
      • Invest in & Stake ALP token
      • Unstake & Withdraw ALP token
  • Alpaca Finance 2.0
    • 💎Introduction to Alpaca Finance 2.0
      • Money Market
      • Leveraged Yield Farming
    • 🚀Launch Plan
    • ⭐Incentive Rewards
    • 🌊AF2.0 Liquidation
    • ❗Risks
    • ⏭️Step-by-Step Guide
      • Deposit
      • Borrow
      • Repay
      • Withdraw
      • Transfer between Accounts
      • Looping Strategies
  • Governance
    • 🗳️Governance Vault
    • 🍃Grazing Range (New)
    • ⚡Early Withdrawal
    • 🔎Governance Sources Details
    • 📝Governance Discussion and Voting
    • 🗒️AIP Details
      • AIP-1: Handling of ITAM Rewards
      • AIP-2: Governance Vault on Fantom
      • AIP-3: Handling of Governance Vault’s Early Withdrawal Penalty
      • AIP-4.1: Handling of a recent bad debt on WaultSwap’s position
      • AIP-4.2: Solution to eliminate bad debt risks from remaining Waultswap positions
      • AIP-5: Interest Model Adjustment
      • AIP-6.1: Limiting Access to Automated Vault
      • AIP-6.2 Limiting Access to Automated Vault
      • AIP-7: Handling of a recent bad debt on Fantom Network
      • AIP-8.1: Increase AUSD utility by providing access to high-leveraged AVs
      • AIP-8.2: Increase AUSD utility by providing access to high-leveraged AVs
      • AIP-9: Deposit Liquidation Treasury Funds into Lending Pools while waiting to be used for buyback
      • AIP-10: Further optimizing the borrowing interest rate slope
      • AIP-11: Adjust Stability Fee for AUSD to help restore peg
      • AIP-12: Handling of bad debt from the recent stkBNB's depeg
      • AIP-13: Removing xALPACA requirement for accessing high-leveraged Automated Vaults
      • AIP-14: Close remaining LYF positions on stkBNB-BNB pool to avoid any potential future bad debt
      • AIP-15.1: Incentives for New Upcoming Products (Perp, AF2.0)
      • AIP-15.2: Distribution Method - Incentives for New Upcoming Products (Perp, AF2.0)
      • AIP-15.3: Incentives Amount for Perp - Incentives for New Upcoming Products (Perp)
      • AIP-15.4: Incentives Amount for AF2.0 - Incentives for New Upcoming Products (AF2.0)
      • AIP-15.5: Sources for Incentives - Incentives for New Upcoming Products (Perp, AF2.0)
      • AIP-16: Adjusting Slope3 max interest rate
      • AIP-17: Handling of extra ALPACA tokens from the AIP-15 incentives
      • AIP-18: Sunsetting Leveraged Yield Farming Support for MDEX pools
      • AIP-19: Implement Shielded Voting
      • AIP-20: Aligning AF1.0 lending performance fee structure with AF2.0
      • AIP-21.1: Adjusting bad debt repayment scheme from the stkBNB de-peg event
      • AIP-21.2: Adjusting bad debt repayment scheme from the stkBNB de-peg event
      • AIP-22: Paid Marketing Budget for Alperp and AF2.0
      • AIP-23: Sunsetting Leveraged Yield Farming Support for TUSD
      • AIP-24.1: New Governance Vault Implementation
      • AIP-24.2: New Governance Vault Implementation - Unlocking Period
      • AIP-24.3: New Governance Vault Implementation - Transferability
      • AIP-24.4: New Governance Vault Implementation - Early Withdrawal
      • AIP-24.5: New Governance Vault Implementation - Early Withdrawal Penalty Model
      • AIP-25: Migration from AF1.0 -> AF2.0
      • AIP-26: Transitioning the Governance Vault
      • AIP-27: Alpaca Insurance Plan Update
      • AIP-28: Updating Governance Voting Structure
      • AIP-29.1: Converting Remaining BUSD in AF1.0 lending into USDT
      • AIP-29.2: Charging conversion fees to the remaining BUSD depositors
      • AIP-29.3: Determining the conversion fees
      • AIP-30: New Product Proposal - Stablecoin
      • AIP-31.1 Handling of remaining assets in the AUSD’s stable swap module
      • AIP-31.2 Handling of remaining assets in the AUSD’s stable swap module
      • AIP-32: Distribution Plan to Lenders of Stablecoins from THE Liquidation
    • ⏭️Step-by-Step Guide
      • Lock ALPACA in Governance Vault
      • Lock more ALPACA/Extend Lock Time
      • Claim Rewards from Governance Vault
      • Add Custom tokens to your MetaMask
      • Vote on Alpaca Improvement Proposal (AIP)
      • Early Withdraw ALPACA from Governance Vault
      • Withdraw ALPACA from FANTOM Governance Vault on BNB Chain
      • Withdraw xALPACA from old Governance Vault
  • ALPIES
    • 🌗Introduction to Alpies
    • 🚋Bridging your Alpies
      • Bridging Alpies from ETH to BNB Chain
      • Bridging Alpies from BNB Chain to ETH
    • ⚡Boosted Leverage
  • Join the Herd (AlpaCareers)
    • 🚀Hiring Section
  • Help center
    • 👩‍🏫Alpaca Academy
      • Lesson 0 - How to Buy Alpaca and Start Earning Yields for Beginners(Lending+Staking)
      • Lesson 1 - Alpaca Finance’s Unique Use-Case — Shorting at a Profit
      • Lesson 2 - Introduction to Hedging with Double-Sided Borrowing
      • Lesson 3 - Liquidation Risk in Leveraged Yield Farming
      • Lesson 4 - Open/Close Positions With 0 Swap Fees
      • Lesson 5 - The Truth About Impermanent Loss and Common Misunderstandings
      • Proficiency Exams (earn NFTs)
    • 📚General Knowledge Articles
      • Navigating the Economic and Safety Landscape of DeFi
      • Yield Farming and Liquidity Mining: The Engines of DeFi Growth
      • Leveraging Advanced DeFi Instruments for Secured Funds Compounding with Alpaca Finance
      • Get Stablecoin Yields and Build Crypto Savings with Alpaca Finance's Lending Platform
      • Understanding the Basics of Decentralized Finance (DeFi)
      • Advanced Ways of Decentralized Trading with Alpaca Finance’s Perpetual Futures Exchange
      • Maximize Your Returns with Automated Vaults and Leveraged Yield Farming on Alpaca Finance
      • What does 'buy and hold' or HODL mean in investing?
      • What is DeFi Governance and why is it important?
      • What exactly are DeFi Money Markets?
      • What is yield farming and how does it differ from traditional investing?
      • What exactly does 'unlocking liquidity from long-term holdings' mean?
    • ❓FAQ
    • 🧰Useful Tools
    • 📘Terminologies & Calculation Methodology
      • 🧮APY Calculation
      • 📈Profit/Loss Calculation
    • ⚠️Common Error Messages
    • 💸Third-Party Earning Opportunities with ALPACA
  • Developers
    • 🐞Bug Bounty Program
    • 🎛️Protocol Configurations
    • 💻Integrating With Alpaca Finance
    • 🏛️AF2.0 Repurchasing Guide
    • ⚡AF2.0 Flashloan Guide
  • Past Products
    • 💵AUSD (Old)
      • 💵Introduction to AUSD
      • 💹How to Participate
      • 💦AUSD Liquidation
      • 〰️AUSD Price Stability Module
      • ❗Risks
      • ⏭️Step-by-Step Guide
        • Open an AUSD Position
        • Adjust an AUSD Position
        • Close/Partially Close an AUSD Position
        • Add/remove AUSD-3EPS LP tokens
        • Redeem AUSD for ALPACA
      • 📔AUSD Parameters
    • 🗳️Governance Vault (Old)
    • ⚡Early Withdrawal (Old)
    • 🌿Grazing Range (Old)
    • 💪Stronk Vault
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  • Global Parameters
  • Borrowing Interest Rate
  • Safety Parameters

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  1. Our Protocol
  2. Global Protocol Parameters

Automated Vault Parameters

Global Parameters

(*All fees below are already factored into the app's displayed APYs on the app. What you see is what you earn.)

Parameter
Value
Description

AV Farming Performance Fee

15%

Percent of the yield farming rewards portion of farmer revenue that is collected as a performance fee;

  • 8% goes to ALPACA buyback and is then distributed as performance fee sharing to Governance Vault stakers (as Protocol APR)

  • 7% goes towards Alpaca's development fund

(Replaces LYF Farming Performance Fee. Not double charged)

AV Management Fee

2%

Charges 2% annually

  • 1% goes towards weekly buyback and burn of Alpaca

  • 1% goes towards Alpaca's development fund

Withdrawal Fee

0.3%

Collected as share token when users make a withdrawal from an Automated Vault

  • 0.15% goes towards weekly buyback and burn of Alpaca

  • 0.15% goes towards Alpaca's development fund

Min. Deposit Size

$50

The minimum deposit size required to deposit in AVv3.

Borrowing Interest Rate

Flat borrowing interest rate for AV

Asset
Borrowing Interest Rate

BNB

6%

USDT

6%

USDC

6%

BTCB

5%

ETH

5%

Safety Parameters

Net Exposure Tolerance:

  • Description: the smart contract would check the vault’s net exposure before vs. immediately after the manager’s action and not allow any hedging transaction that would make the net exposure of the vault worse off. For example, a market-neutral vault would want a 0 exposure on BNB. If the current exposure is slightly long BNB, then a manager would not be allowed to make a hedging transaction that would increase the BNB exposure.

  • Value: 0%

Note: this check does not apply to the “borrow more” transaction where the vault manager increases the leverage of the vault.

Swap Price Impact Tolerance:

  • Description: we will set a price impact tolerance on a swap (e.g., hedging, etc.) If a swap transaction has a price impact greater than the set percentage value, the transaction will be reverted.

  • Value: 1.0%

Max Leverage:

  • Description: We expect normal operation to run between 2–3x leverage. We will set a leverage limit for the vault, beyond which would not allow for the manager to borrow more assets.

  • Value: 8x

Equity Change Tolerance:

  • Description: The equity tolerance acts as a final safety check that the transaction performed by a manager is safe. It will check the % change in equity before vs. immediately after the transaction and will revert the transaction if the % loss is too high.

  • Value: 0.25%

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Last updated 1 year ago

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