> For the complete documentation index, see [llms.txt](https://docs.txflow.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.txflow.com/txflow-l1/protocol-vault.md).

# Protocol Vault

### Overview

The Protocol Vault is community-owned liquidity used to support ecosystem growth.

### Functions

* Market Making
* Liquidity Provision
* Liquidation Backstop

### Accounting

The protocol tracks:

* Vault Assets
* Vault Liabilities
* Utilization
* Risk Exposure

### Settlement

All vault accounting is settled on-chain.