Strategy Owner

A Strategy Owner is responsible for deploying and operating a Strategy Vault. They define risk parameters, execute strategies across integrated DeFi layers, and power downstream lending markets through real performance.

This role is designed for creators, builders, and community leaders who coordinate capital and manage risk.

1. Vault Creation

The Strategy Owner begins by creating a new Strategy Vault through the Vault Factory.

During creation, the owner defines:

• Vault Name

• Maximum Drawdown A fixed, immutable parameter that caps allowable losses from peak equity.

• Base Asset Configuration

Once deployed:

• The vault is assigned a unique program-controlled account

• Share-based accounting is initialized

• Strategy execution permissions are bound to the owner

At this point, the vault is live and ready to accept capital.

2. Initial Capital Deployment

The Strategy Owner may optionally deposit initial capital into the vault.

This capital:

• Is converted into vault shares

• Signals alignment and skin-in-the-game

• Compounds alongside Strategy LP capital

Ownership is always represented through shares, not direct balances.

3. Strategy Execution

The Strategy Owner executes strategies using the vault’s assets.

Strategy execution may include:

• Token swaps via integrated DEX aggregators

• Liquidity provision through LP protocols

• Leveraged or lending-based strategies

• Allocation into yield-bearing assets

All actions:

• Are executed through program-controlled accounts

• Keep assets within the vault at all times

• Are auditable on-chain

The Strategy Owner cannot directly withdraw assets from the vault.

5. Profit Allocation & Fees

When the vault generates profits:

• 70% of profits are retained within the Strategy Vault and compound as strategy capital

• 30% of profits are allocated to the associated lending market to fund lender APY

Fees are applied as follows:

• 2% Management Fee Applied continuously via share minting to the Strategy Owner

• 20% Performance Fee Applied only on profits above the high-watermark

  • 80% allocated to the Strategy Owner

  • 20% allocated to the protocol

No assets are extracted directly from the vault.

6. Risk Enforcement & Drawdown Control

The Strategy Owner operates within the vault’s predefined risk limits.

If the vault’s drawdown exceeds the configured maximum:

• All active positions are force-closed

• Assets are returned to a base state

• Strategy execution is halted

• The vault enters recovery mode

This mechanism ensures that risk is bounded and enforced by code, not discretion.

7. Long-Term Vault Growth

As the Strategy Owner continues to perform:

• Strategy LP capital may increase

• Vault equity compounds over time

• Lending market capacity expands

• Community participation deepens

The Strategy Owner’s reputation and economic upside grow together, driven by measurable performance rather than incentives or emissions.