> 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/vault/protocol-vault-and-user-vault.md).

# Protocol Vault and User Vault

### Protocol Vault

The Protocol Vault is TxFlow's community-owned liquidity pool. It performs market making and backstop liquidations to earn trading fees — strategies previously available only to institutional market makers, now open to all users.

**Deposit lock-up:** 4 days from your most recent deposit. Example: deposit on Oct 10 at 10:00 → withdrawable on Oct 14 at 10:00.

{% hint style="info" %}
During the early mainnet phase, the Protocol Vault is not yet accepting user deposits. Community deposits will open in a subsequent phase.
{% endhint %}

### User Vault

User Vaults are created by community members. Any user can deposit `USDC` and share in a vault's trading profits.

The vault leader (creator) receives a **10% profit share** for managing the strategy. User Vaults are a way for traders to share their strategies with the community while earning a management fee.

{% hint style="info" %}
During the early mainnet phase, vault creation is limited to a selected pilot group. It will open to all users in a later phase.
{% endhint %}

### Protocol Vault vs. User Vaults

<table><thead><tr><th width="162.8359375">Feature</th><th width="336.67578125">Protocol Vault</th><th width="486.7890625">User Vaults</th></tr></thead><tbody><tr><td>Operator</td><td>TxFlow protocol (community-governed)</td><td>Individual traders or teams</td></tr><tr><td>Primary Strategy</td><td>Market making + liquidations</td><td>Varies (directional, arbitrage, etc.)</td></tr><tr><td>Revenue Source</td><td>Trading fee rebates + liquidation rewards</td><td>Trading profits</td></tr><tr><td>Ownership</td><td>100% community-owned</td><td>Operator + depositors</td></tr><tr><td>Profit share</td><td><strong>0%</strong> </td><td>10% (to vault leader)</td></tr><tr><td>Access</td><td>Open to all (when deposits enabled)</td><td>Open to all (when deposits enabled)</td></tr><tr><td>Risk Profile</td><td>Lower (market-neutral)</td><td>Varies — can be high for directional strategies</td></tr></tbody></table>