How the strategy book is built, priced, and watched.
For users who want the full picture: how strategies are selected, how exposure limits are set, how blended yield is computed, and how the reserves sleeve is sized for redemptions.
- Investment committee approval, with documented thesis and risk limits
- Counterparty and venue diligence: legal, operational, technical
- Exposure caps at the strategy, counterparty, and venue level
- Per-position stop-outs and drawdown thresholds
- Continuous monitoring of utilisation, slippage, and exit liquidity
- Periodic review with the option to scale down, pause, or wind out a strategy
Each bucket contributes its estimated target yield weighted by its allocation share. The result is a blended strategy yield. Northvault retains a small operating margin; the rest is distributed to depositors daily. Tier uplift on the loyalty rewards programme can add basis points to the blended yield for higher-tier depositors. All figures are estimated, variable, and not guaranteed.
In soft markets, the floor is allowed to drift lower rather than reach for risk to defend a number. Strategy weights and yield bands are reviewed on a regular cadence and adjusted as conditions change.
No single counterparty or venue is permitted to represent more than 30% of the book. No single on-chain pool position is permitted to represent more than 10% of the book. The opportunistic sleeve is capped at 10% of the book regardless of opportunity set. Limits are evaluated at deployment and rebalanced when allocations drift beyond their bands.
The reserves sleeve targets ~45% of the book and is held in short-duration, dollar-denominated cash equivalents. Its purpose is twofold: provide the stable base yield of the book and meet redemption demand without forced unwinds of the other sleeves.
In ordinary conditions, withdrawals to allowlisted addresses are processed same-day from the reserves sleeve. In high-redemption-stress scenarios, withdrawals may be queued while higher-yielding sleeves are unwound in an orderly manner. We document any queue events and publish their resolution.