> For the complete documentation index, see [llms.txt](https://docs.ontorium.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ontorium.io/ontorium-stack-overview/financial-layer/aqua-vaults/oxau-vault.md). # OXAU Vault ### **Overview** The AQUA OXAU Vault is an ERC-4626-based, gold-denominated yield vault built on AQUA Market. Users deposit OXAU, receive aqOXAU Vault shares, and gain exposure to yield generated through approved strategies without having to manage individual lending, liquidity, or strategy positions directly. The Vault is designed to allow users and institutions to maintain OXAU-denominated exposure while making their holdings more productive within the AQUA ecosystem. The OXAU Vault accepts only OXAU as its designated deposit asset and operates under configured strategy limits, liquidity parameters, risk controls, and reporting requirements. *** ### Purpose The OXAU Vault is designed for users and institutions seeking to maintain on-chain exposure to gold while participating in approved OXAU-denominated yield strategies. Deposited OXAU may be allocated across approved strategies, which may include: * AQUA lending markets * Approved OXAU liquidity strategies * Approved gold-linked financing strategies * Approved gold-linked financing strategies, including approved physical gold leasing arrangements based on the deposited OXAU-equivalent gold weight * Other disclosed strategies capable of generating OXAU-denominated returns The Vault is intended to support OXAU liquidity across AQUA Market while providing depositors with a single Vault position representing their proportional interest in the Vault’s recognized assets. Strategy availability, allocation limits, liquidity terms, and applicable risks may change over time. *** ### OXAU Vault Details
VaultTarget YieldWithdrawal PeriodChainDeposit Asset
AQUA OXAU VaultEstimated APY: TBDInstant / T+1 Queue
The OXAU Vault accepts only OXAU through the supported deposit process. Tokens transferred directly to the Vault contract outside the official deposit flow may not result in Vault shares being issued and may not be recoverable through the standard Vault interface. Users should deposit only through the official [AQUA Market](https://aquafinance.io/) interface and verify the network, asset, and transaction details before confirming a transaction. *** ### Share Token When users deposit OXAU, they receive aqOXAU Vault shares. Each aqOXAU share represents a proportional claim on the OXAU Vault’s recognized assets. The number of shares issued is determined using the Vault’s current accounting exchange rate, subject to applicable fees, rounding rules, and ERC-4626 conversion mechanics. Base yield accrues through changes in the aqOXAU share price. When the Vault generates positive net returns, each aqOXAU share may become redeemable for more OXAU. Strategy losses, fees, or negative valuation changes may cause the share price to decline. Vault shares do not rebase, and Base APY is not distributed through a separate reward token. For instant withdrawals, shares are burned when the withdrawal transaction is completed. For queued withdrawals, shares are burned when the withdrawal request is submitted. The corresponding OXAU is transferred later, after sufficient liquidity has been prepared and the withdrawal becomes claimable. *** ### Yield and Strategy The OXAU Vault may display yield in two separate components. #### Base APY Base APY represents the annualized historical or indicative performance generated by the Vault’s approved strategies. Base yield may include: * Interest generated through AQUA lending markets * Returns from approved OXAU liquidity strategies * Returns from approved gold-linked financing strategies * Returns from approved physical gold leasing arrangements, where applicable, based on the gold weight represented by deposited OXAU * Other disclosed OXAU-denominated strategy returns Base APY accrues through the aqOXAU share price and is displayed net of the applicable performance fee unless otherwise stated. Base APY is calculated in OXAU terms. Changes in the fiat value of gold or OXAU are separate from the Vault’s strategy-generated yield. For example, an increase in the market price of gold may increase the fiat value of a user’s OXAU position without increasing the Vault’s OXAU-denominated APY. Similarly, a decline in the market price of gold may reduce the fiat value of the position even if the Vault generates positive OXAU-denominated yield. Base APY is variable and may increase or decrease depending on market conditions, utilization, strategy performance, liquidity, fees, and recognized valuation changes. #### Boost APY Boost APY represents additional yield distributed through time-limited incentive programs, protocol rewards, or ecosystem campaigns. Boost APY is displayed separately from Base APY and does not accrue through the Vault share price unless explicitly stated. Boost programs may be adjusted, extended, suspended, or discontinued according to their applicable campaign terms. Displayed APY is not a forecast or guarantee of future performance. *** ### Strategy Allocation The OXAU Vault may allocate deposited assets across multiple approved strategies in accordance with its allocation policy. Each strategy may be subject to: * Absolute allocation caps * Relative allocation limits * Liquidity requirements * Strategy-specific risk limits * Governance or curator approval * Reporting and valuation requirements * Counterparty or venue restrictions The initial production strategy composition will be disclosed before deposits are enabled. | Strategy Type | Description | | ------------- | ----------- | | TBD | TBD | Actual allocations may change over time due to borrowing demand, withdrawal demand, market conditions, strategy performance, available liquidity, and configured risk limits. A target allocation is not a guarantee that the Vault will continuously maintain that allocation. Assets may remain undeployed or be reallocated when required for liquidity, risk management, or operational purposes. Only approved and disclosed strategies may receive Vault assets. *** ### Key Risks Depositing into the OXAU Vault involves risk, including the possible loss of principal. * **Gold Price and OXAU Risk:** The fiat value of OXAU may rise or fall with the market price of gold. OXAU also depends on its issuance, reserve, custody, and legal arrangements. * **Custody and Redemption Risk:** Physical gold redemption may be subject to eligibility requirements, minimum amounts, fees, jurisdictional restrictions, settlement periods, and operational procedures. * **Strategy and External Protocol Risk:** Approved strategies or third-party protocols may underperform, experience losses, become illiquid, or fail. * **Liquidity Risk:** The Vault may not have enough immediately available OXAU to satisfy all withdrawals. Users may need to use the T+1 withdrawal queue, and settlement may take longer than expected. * **Smart Contract, Oracle, and NAV Risk:** Contract vulnerabilities, incorrect price feeds, stale valuations, or reporting errors may affect share pricing, strategy operation, deposits, or withdrawals. * **Operational and Regulatory Risk:** Vault operations may be affected by reporting delays, counterparties, emergency controls, compliance requirements, or regulatory restrictions. *** {% hint style="warning" %} ### Important Notice The OXAU Vault is not a bank deposit or guaranteed gold investment product. Principal, liquidity, withdrawal timing, gold price, and yield are not guaranteed. Displayed APY is variable and may differ from future realized performance. {% endhint %}