> For the complete documentation index, see [llms.txt](https://docs.usecanopic.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usecanopic.com/walkthroughs/fund-a-vault.md). # Fund a vault A hands-on LP guide: clearing onboarding, choosing which vaults to back, depositing, monitoring and exiting. LPs on Canopic supply capital to one or several [market vaults](/how-trading-works/market-vaults.md) and earn the spread on the trades those vaults fill. The right mental model is a market-making book you help finance, which is quite different from yield farming. Your income is generated by genuine order flow, and the risk you take on is inventory risk. [Providing liquidity to a vault](/how-trading-works/providing-liquidity.md) explains that risk thoroughly and is the recommended starting point. What follows is the hands-on version. ## Onboarding Supplying capital requires an `LP` attestation. For launch, only professional clients receive one, and they obtain it via the identical flow used for trading clearance. Vault inventory consists partly of Stock Tokens, so you will also be asked to read the [issuer risk disclosure](/risk/issuer-exposure.md). The **Access** section of your **Account** page shows whether the `LP` role is active on your wallet. ## Choosing where to deposit Judge each vault on its own merits. The **Vaults** page lists every vault with its tier, how much of its inventory currently sits in the token, the tier half-spread and the share paid to LPs, and you can filter by tier. For deeper history, [the Ledger](/walkthroughs/use-the-ledger.md) is the place to look: | What to examine | What it tells you | | ------------------------------------------------------------------------------ | ----------------------------------------------------------- | | Spread revenue actually earned and volume split by regime, from listing onward | The vault's real earnings, and which sessions produced them | | Present inventory mix and the distance between skew and the band | Whether today's inventory leans heavily to one side | | Caps and tier parameters | The rules governing how the vault quotes | | Every halt, with its stated reason | How frequently quoting has paused, and the causes | Tier A listings see heavier turnover at narrower spreads. Tier C listings pay wider spreads, but their flow is thinner and gaps more frequently. Canopic intentionally has no pooled product that allocates across tiers for you. ## Depositing Bring USDG, the listing's own token, or a combination. Your contribution is priced at the guarded mid, and the vault mints shares in return. There is no lockup and no entry fee. During the guarded launch period, a TVL ceiling applies per vault and is published on that vault's page. Once a vault reaches that cap it refuses new deposits until the timelock lifts the ceiling. Deposits are also paused while a listing is halted, because they are valued at the live mid; withdrawals are unaffected. ## Monitoring a position Each fill nudges the value of a share upward. Your position view reports that value together with your portion of the inventory the vault is holding today. Keep an eye on three things: 1. **Skew.** Once inventory reaches the limit of the band, quoting drops to one side and revenue falls. When skew stays stuck, flow in that market is consistently running one way. 2. **Regime mix.** Your compensation for gap risk comes from trades filled while the market is closed. Check the Ledger to see how much of the vault's activity was weekend flow. 3. **Halts.** A halted vault earns no spread, yet you can still withdraw for the whole duration. ## Withdrawing When you burn shares you always receive your pro rata portion of the USDG and tokens the vault holds at that moment, delivered in kind. That rule applies whatever state the vault is in, without exception. Two practical consequences: * Your payout depends on the mix at exit. Compared with what you deposited, you might end up holding more of the token and less USDG, or the opposite. Converting the token back is a normal trade at the normal cost. * Exiting during `CLOSED` leaves you with inventory that will be costly to unwind until the home exchange opens again. You can always leave; it is simply worth thinking about when. ## Records and tax Share value captures both the spread you earn and movements in price, and an in-kind withdrawal is treated as a disposal in most jurisdictions. A complete CSV history for each position can be exported from the Ledger. How to treat it is a matter for you and your adviser; nothing in these docs is tax advice. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.usecanopic.com/walkthroughs/fund-a-vault.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. 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