Skip to main content

​
What the close operation does

Closing a vault settles all three pillars and returns the deposit plus accumulated yield to the user’s wallet, denominated in SOL. The close runs in one transaction.
1

Close the perpetual hedge

The position is unwound on the configured venue and any realised funding is booked to the vault.
2

Repay the borrow leg

Borrowed SOL is returned to Kamino and the supplied liquid staking collateral is recovered.
3

Unstake the LST

The recovered LST is converted back to SOL through the staking provider or a same-chain swap.
4

Pay out to the wallet

The net SOL amount is settled to the user’s wallet. No further action is needed.

​
The 96-day penalty schedule

A vault closed before day 96 incurs a closure fee. The fee starts at 3 % of the deposit on day 0 and decays linearly to 0 % at day 96. The formula for the penalty rate as a function of the holding period in days:
The penalty applies only to early closure. After day 96 it is zero.

​
Penalty by closure day

The table below shows the penalty rate at representative days, applied to a 2 SOL deposit. The penalty exists because the strategy is most efficient when capital can be held long enough to ride out short-term variance in funding rates and lending spreads. A very short hold can leave the vault on the wrong side of a funding regime change, and the protocol reserves a buffer to smooth that case. The penalty is paid from the vault’s balance at closure. It is not added separately; the SOL the user receives is already net of the fee.

​
When closing makes sense

Close when:
  • The user wants to withdraw the deposit. There is no other way to exit.
  • The vault is past day 96 and the penalty is zero.
  • The penalty schedule has decayed to a level the user is comfortable paying.
Close is not the right action when the user only wants to collect yield. Use the claim operation instead.

​
What the user receives at close

The payout is denominated in SOL. It equals: If any claim was made during the vault’s life, the already-claimed amount sits in the user’s wallet from those earlier transactions. The close only pays what is left.

​
Policy enforcement

The close is enforced by the policy extension. The worker can propose a close, but the smart account checks that the proposed instructions match the closure procedure baked into the policy: same unwind order, same venue interactions, same payout address. If the proposed close deviates, the smart account refuses the transaction. A close therefore always returns funds to the user’s wallet. There is no path inside the policy that lets the worker route the payout elsewhere.

​
Next read

Fees

The service fee that applies to realised yield, the creation fee, and the closure penalty in detail.

Principal protection

The reserve that tops up the deposit on a normal close if realised yield falls short.