> For the complete documentation index, see [llms.txt](https://docs.vaultstreet.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vaultstreet.com/overview/carry.md).

# CARRY

CARRY is a permissioned, yield-bearing vault token issued by Vault Street. It is designed for eligible participants seeking on-chain exposure to a diversified higher-yield portfolio, with USDC-denominated subscriptions and redemptions and a permissioned circulation model with KYB-gated deposits, transfers, and withdrawals.

#### Strategy Description

The Carry vault pursues a leveraged carry strategy.

The vault deploys capital across tokenized private credit and market-neutral positions in on-chain markets, generating leveraged yield on diversified higher-yielding assets. 

Eligible strategies may include private and asset-backed credit, secured consumer and real-estate credit, payments and receivables financing, equipment- and hardware-collateralized credit, market-neutral basis and carry strategies, tokenized fixed-income instruments, and collateralized lending positions.

#### Key Parameters

<table><thead><tr><th width="253">Parameter</th><th>Value</th></tr></thead><tbody><tr><td>Denomination</td><td>USDC</td></tr><tr><td>Protocol Fee</td><td>1.0% p.a. on NAV plus a 10% performance fee, subject to a high watermark and monthly crystallization; no withdrawal fee</td></tr><tr><td>Target leverage</td><td>4x guideline ratio; actual leverage may vary and may be reduced</td></tr><tr><td>Express withdrawal</td><td>Best efforts by the next Business Day for aggregate redemptions not exceeding 10% of NAV in the relevant calendar month, subject to available liquidity</td></tr><tr><td>Standard withdrawal</td><td>Epoch-based: request cut-off at 00:00 UTC on the 27th; settlement targeted by the 5th day of the following month, with possible extension of up to 20 Business Days</td></tr><tr><td>NAV update</td><td>Daily valuation point at 12:00 UTC, weekly reconciliation on Wednesday, and on-chain publication; positive income may be smoothed between reconciliations</td></tr><tr><td>Transfer model</td><td>Permissioned — whitelisted addresses only</td></tr></tbody></table>

#### Risks

|                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Interest rate risk                         | The yield you receive depends on the spread between what the Vault earns (returns on its underlying credit and market-neutral assets) and DeFi borrowing rates (what it pays). These move independently. If borrowing costs rise or collateral yields fall, the net yield compresses — and can turn negative, eroding your deposit.                                                                                                                                              |
| Stablecoin de-peg risk                     | The Vault borrows stablecoins that are designed to maintain a 1:1 USD peg but may deviate. Even small deviations affect the Vault's effective cost of borrowing and net return. The Vault may also interact with assets described as "USD-neutral", where any deviation from $1, whether from a failed hedge, insufficient collateral or market stress, affects the Vault's value directly.                                                                                      |
| Leverage and liquidation risk              | The Vault uses up to 4x leverage. Leverage amplifies both gains and losses. If collateral values fall — due to de-peg events, rate moves, or protocol parameter changes — positions may be force-liquidated at market prices, potentially resulting in a loss of principal.                                                                                                                                                                                                      |
| Excluded-asset and deferred repayment risk | The Company may designate an impaired position as an Excluded Asset, immediately reducing the Vault's NAV. If you redeem thereafter you receive the reduced value, while the portion of your claim tied to the Excluded Asset becomes a Deferred Amount, payable only if and when that position is realised, which may be after a long delay or never.                                                                                                                           |
| Fund wrapper risk                          | Exposures are held as tokenised interests in underlying funds and facilities, which may rank behind other creditors in the event of the relevant issuer's insolvency and may impose gates or suspend withdrawals. Combined with the Vault's monthly redemption cycle, this may cause redemptions to be delayed, gated or suspended in periods of stress.                                                                                                                         |
| Credit risk                                | A substantial portion of assets is allocated to unrated private credit, including facilities to trading firms, trade receivables, home equity lines, payment-financing receivables and hardware-collateralised credit. Such exposures are largely unsecured or secured on volatile assets. A default, fraud, or credit deterioration may result in a permanent loss of principal, with potentially minimal recovery. Diversification mitigates but does not eliminate this risk. |
| Protocol risk                              | DeFi lending protocols can change their risk parameters — loan-to-value limits, collateral eligibility, liquidation thresholds — without notice. Such changes may force rapid deleveraging at unfavourable prices.                                                                                                                                                                                                                                                               |
| No guaranteed return                       | The Vault does not guarantee any yield, and past performance is not indicative of future results. You may receive less than you deposited, up to a total loss.                                                                                                                                                                                                                                                                                                                   |