> ## Documentation Index
> Fetch the complete documentation index at: https://docs.synclear.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Savings Vaults — ERC-4626 Mechanics and Operations

> ERC-4626 vault mechanics: share minting, per-block yield accrual, withdrawal queues, fee structure, and step-by-step deposit and withdrawal instructions.

Synclear savings vaults are ERC-4626-compatible yield-bearing contracts. Each vault accepts a single underlying asset (for example, USDC) and issues vault shares representing a proportional claim on the vault's total assets, including accrued yield. As yield accrues, each share appreciates in value — there is no rebasing, no manual claiming, and no separate reward token.

## Share Mechanics

When you deposit into a savings vault, the contract mints a quantity of vault shares proportional to your deposit relative to the vault's current total assets and total share supply:

```
shares_minted = deposit_amount × (total_shares / total_assets)
```

On the first deposit into a vault, shares are minted 1:1 with the deposited amount (minus any applicable fees). As yield accrues into the vault, `total_assets` grows while `total_shares` remains constant — meaning each share redeems for a progressively larger amount of the underlying asset.

**Share price** is the exchange rate between one vault share and the underlying asset at any point in time:

```
share_price = total_assets / total_shares
```

Your effective balance at any time is `shares_held × share_price`. You can view this in the **My Positions** dashboard.

## Yield Accrual

Yield accrues to the vault on a per-block basis as underlying allocations (credit pool interest, liquidity provision fees, treasury yield) generate returns. The vault's `total_assets` is updated each time yield is harvested. Harvest frequency is vault-specific and disclosed on the vault's detail page — most vaults harvest at least daily.

The APY displayed on each vault's detail page is a trailing 7-day annualized figure, updated on every harvest. Forward-looking APY is not guaranteed.

## Withdrawal Queues

<Tabs>
  <Tab title="Instant Withdrawal">
    Vaults with instant withdrawal allow redemption of shares for the underlying asset at any time, subject to available liquidity in the vault. If vault liquidity is sufficient, the transaction settles in a single block.
  </Tab>

  <Tab title="1-Day Queue">
    Vaults backed primarily by credit pool allocations may impose a 1-day withdrawal queue. When you submit a redemption request, your shares are locked and a withdrawal is queued. The underlying asset is returned to your wallet within 24 hours as the curator rebalances vault liquidity. You can cancel a queued withdrawal before it is processed.
  </Tab>
</Tabs>

<Note>
  Withdrawal queue type is displayed on each vault's detail page. Check this before depositing if near-term liquidity is a requirement.
</Note>

## Fee Structure

| Fee Type            | Basic Vaults    | Premium Vaults                 |
| ------------------- | --------------- | ------------------------------ |
| **Management Fee**  | 0.50% per annum | 0.75% per annum                |
| **Performance Fee** | None            | 10% of yield above hurdle rate |
| **Deposit Fee**     | None            | None                           |
| **Withdrawal Fee**  | None            | None                           |

Management fees are accrued continuously and reflected in the share price — they reduce the rate of share price appreciation rather than being charged as a separate transaction. All fee parameters are immutable after vault deployment and verifiable on-chain.

## How to Deposit

<Steps>
  <Step title="Connect your verified wallet">
    Navigate to the Vaults page. Connect your KYC/KYB-verified wallet. Vault contracts enforce an allowlist; unverified wallets will have deposit transactions reverted.
  </Step>

  <Step title="Select a vault">
    Review available vaults. Each listing displays the underlying asset, current APY (trailing 7-day), TVL, withdrawal type, and fee structure. Click a vault to view its full detail page including allocation breakdown and curator profile.
  </Step>

  <Step title="Enter deposit amount">
    On the vault detail page, click **Deposit**. Enter the amount of the underlying asset you wish to deposit. The interface will display the number of vault shares you will receive at the current share price.
  </Step>

  <Step title="Approve the asset transfer">
    If this is your first deposit of this asset into this vault, sign an ERC-20 approval transaction authorizing the vault contract to transfer funds from your wallet.
  </Step>

  <Step title="Confirm the deposit">
    Sign the deposit transaction. Vault shares are minted to your wallet on-chain. Your position appears immediately in **My Positions** with live share price and effective balance.
  </Step>
</Steps>

## How to Withdraw

<Steps>
  <Step title="Navigate to your position">
    Open the **My Positions** dashboard and select the vault you wish to withdraw from. The current share balance and estimated underlying asset value are displayed on the position card.
  </Step>

  <Step title="Initiate the withdrawal">
    Click **Withdraw**. Enter either a share amount or an equivalent underlying asset amount — the interface converts between the two at the current share price. Review the projected assets to be returned and any applicable queue delay.
  </Step>

  <Step title="Confirm the redemption transaction">
    Sign the redemption transaction. For instant-withdrawal vaults, the underlying asset is transferred to your wallet in the same block. For vaults with a 1-day queue, your shares are locked and the asset is returned within 24 hours. You can cancel a queued withdrawal at any time before processing completes.
  </Step>
</Steps>

## Contract Interface

The following ERC-4626 functions are available for direct smart contract interaction. All calls must originate from a KYC/KYB-verified address.

```js theme={null}
// Preview shares to be minted before depositing
const expectedShares = await vault.previewDeposit(amount);

// Deposit underlying asset; returns shares minted to receiverAddress
const shares = await vault.deposit(amount, receiverAddress);
```

`amount` is denominated in the vault's underlying asset (e.g., USDC with 6 decimals). `receiverAddress` is the address that will receive the minted vault shares — this may differ from `msg.sender` if depositing on behalf of another verified address.

```js theme={null}
// Preview underlying assets returned before redeeming
const expectedAssets = await vault.previewRedeem(shares);

// Redeem vault shares for underlying asset
const assets = await vault.redeem(shares, receiverAddress, ownerAddress);
```

`ownerAddress` is the address holding the shares to be burned. `receiverAddress` is the address that will receive the underlying asset on redemption.