FNDZ for traders — How to create a vault
FNDZ is the world’s first decentralized finance (DeFi) copy trading platform. The FNDZ ecosystem consists of the FNDZ token and the FNDZ platform, enabling novice traders to learn and earn from the trading strategies of their more experienced counterparts. Utilizing DeFi infrastructure, FNDZ allows beginners to copy the trades of seasoned traders automatically, securely, and easily.
To copy trades, users must first select a vault which they wish to copy. A vault is a set of smart contracts which contains the digital assets under management by the vault creator, typically an experienced cryptocurrency trader. The vault operator carries out trades with the assets under their management, sharing the resulting profits with those who have contributed to the vault. All vault operators must go through a certification process before being able to trade on FNDZ.
Connecting your wallet
The first step in vault creation is connecting your wallet. You can do this by clicking the ‘Connect Wallet’ button in the top, right-hand corner. Clicking this button will load an interface containing three sections:
- A tickbox which you need to click to agree to the terms and conditions;
- A choice between the Ethereum and Binance Smart Chain networks;
- A choice between various wallets.
To connect your wallet, agree to the terms and conditions and select the appropriate network and wallet.
Creating a new vault
Once your wallet is connected a message will pop up asking whether you want to create a new vault or browse the details of the vaults you have already created. To create a vault, click “Create Vault.” This will open the vault creation tool.
Choose a name for your vault and a denomination asset (for Binance Smart Chain, the appropriate denomination asset will be “BUSD” and for Ethereum it can be either “USDT” “DAI” or “USDC”), then click “Next.”
Configuring your vault
Setting management and performance fees
Select whether you wish to charge a management and/or a performance fee. Use the sliders to select any value between 0–3% for the management fee and 0–30% for the performance fee. The management fee is paid once upon entry to the vault, but the performance fee is charged periodically (this period being known as the “crystallization period”) on profits. Use the drop-down menu to select the crystallization period. It can be charged weekly, monthly, or quarterly. Once you have made your selections click “Next.”
Whitelisting addresses for deposits
It is possible to whitelist addresses who can deposit into your vault, meaning that entry into it is made on an invitation-only basis. If you add addresses to the whitelist, no other addresses than those listed will be able to enter your vault. To make your vault invite-only, toggle the “Limit Who Can Deposit” button and enter the addresses you wish to add to the white list.
You can also set minimum or maximum deposit amounts on the same screen by engaging the “Limit Deposit Amount” button and entering any desired minimum and maximum.
Setting a Withdrawal Window
On the ”Redemptions” page, you have the option to provide a withdrawal window. This setting restricts the time during which depositors can withdraw their contributions from your vault. To enable a withdrawal window, simply toggle the “Provide a Guaranteed Withdrawal Window” button and select the start time and duration you desire.
You also have the option of setting a time-lock on withdrawals. This represents a period of time after initial contribution during which a depositor cannot withdraw their contribution from your vault. Setting such a time-lock can protect against various types of arbitrage, but it is important that you think carefully about the extent of timelock necessary before implementing it as it cannot be changed after your vault has been created. By default it is set to one day.
Reviewing Vault Settings
Finally, the “Review” page shows you an overview of your selected settings. It is very important that you review all your settings as many of them cannot be changed after vault creation! When you are happy with the settings you have chosen, check the box to indicate agreement with the terms and conditions and then hit the “Create” button.
Managing Multiple Vaults Simultaneously
You can create and manage multiple vaults at the same time. You can also add managers to your vault and manage a vault together with one or more people.
Promoting your vault
That’s it — -simple and easy to set up and manage!
Once your vault is up and running, you can gain visibility in various ways. The best way is to outperform everyone else — this will make your vault show up in the FNDZ leaderboards. You can also promote your vault directly, by having people share referral links for your vault in return for a small cut on your fees. You can also promote it indirectly by appealing to specific subgroups, such as those interested specifically in relatively low-market cap projects or any other specific set of tokens. Finally, you can use the FNDZ token to advertise your vault, giving it a more prominent position on the platform.