📖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.)


AV Farming Performance Fee


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


Charges 2% annually

  • 1% goes towards weekly buyback and burn of Alpaca

  • 1% goes towards Alpaca's development fund

Withdrawal Fee


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


The minimum deposit size required to deposit in AVv3.

Borrowing Interest Rate

Flat borrowing interest rate for AV

AssetBorrowing Interest Rate











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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