Documentation
SocialsStatisticsLaunch App
  • Welcome to Mars Protocol
  • Getting Started
    • How to set up a Wallet
    • Connect your wallet
    • Using a Credit Account
  • Credit Accounts
  • Perpetual Futures (Perps)
    • Perps Vault (Counterparty Vault)
    • Funding Rate Mechanism
    • Price Impact
    • Open Interest Caps
    • Vault Solvency Protection
    • Health Factor
    • Liquidations
  • Spot & Margin Trading
  • Lending & Borrowing
  • Leveraged Yield Farming
  • High Leverage Strategies
  • Managed Vaults
    • Creating a Vault
      • How to Resume Vault Creation After Failed Transaction
    • Managing a Vault
    • Depositing into Vault
  • Risk Methodology
    • Asset Listing
    • Protocol Risk Framework
    • Perps Risk Framework
      • Maximum Leverage & LTVs
      • SkewScale
      • Open Interest Caps
      • Maximum Funding Velocity
      • Mitigating Risks of Static Parameters
    • Deposit Caps Risk Framework
  • Governance
    • MARS Token
  • Smart Contracts
    • Address Provider
    • Account NFT
    • Credit Manager
    • Health
    • Incentives
    • Oracle
    • Params
    • Red Bank
    • Rewards Collector
    • Swapper
    • Zapper
    • Perps
  • Brand kit
    • The Mars Brand
  • Legal
    • Mars FUD Bible
    • Terms of Service
    • Privacy Policy
    • Cookie Policy
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  • Key Features
  • Vault Parameters
  • Vault Management Mechanics
  • Tutorials and How-Tos
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Managed Vaults

Managed Vaults on Mars Protocol are a powerful tool enabling the decentralized deployment of trading strategies via community-managed Credit Accounts.

These vaults allow experienced traders or strategy designers to operate funds on behalf of depositors—while adhering to strict security and operational constraints.

Each Managed Vault is built on a Credit Account, giving the manager access to leverage and trading capabilities without ever being able to directly deposit or withdraw assets, ensuring robust separation of powers and minimizing risk.


Key Features

Managed Vaults are designed to combine capital efficiency, decentralized strategy deployment, and user safety. Core features include:

  • Vault Manager Access: Managers interact with the Mars trading interface to execute trades and manage leveraged positions via the Credit Account.

  • No Manager Withdrawals: Managers are restricted from withdrawing from the vault directly. This guarantees that only users control capital outflow.

  • Fungible LP Shares: Users who deposit into a vault receive fungible vault shares, which represent their proportional claim on the vault’s assets and performance.

  • Automated Liquidity Handling: If users request withdrawals and the vault lacks sufficient asset (e.g. USDC) liquidity, the system will automatically borrow the asset (e.g. USDC) from the Red Bank to fulfill the request, maintaining usability and minimizing friction.


Vault Parameters

Managed Vaults incorporate configurable parameters to balance flexibility with control:

Performance Fee

  • Managers can claim fees monthly, aligned with protocol governance standards.

  • Performance fee rates are adjustable, but only during the monthly withdrawal window to ensure transparency and user trust.

Withdrawal Period

  • Vaults may enforce a withdrawal lock-up period, designed to protect strategy integrity and manage liquidity effectively.

  • This period defines how often users may withdraw their funds from the vault.


Vault Management Mechanics

Mars Protocol introduces mechanisms to ensure vaults remain responsive to user actions while preserving strategic autonomy for managers.

  • Withdrawal Scheduling: The user interface clearly communicates the upcoming withdrawal window, allowing users and managers to plan accordingly.

  • Asset Liquidity Preparation: Vault managers can proactively prepare asset liquidity before scheduled withdrawals to avoid slippage or forced borrowing.

  • Automated Borrowing Backup: If a vault is underprepared, Mars will automatically borrow the base asset from the Red Bank to fulfill withdrawals. This ensures withdrawal reliability without compromising the strategy.


Tutorials and How-Tos

To support users and prospective vault managers, Mars Protocol provides comprehensive tutorials:

  • Creating a Vault A guide for traders or strategy designers on how to configure and launch a vault.

  • Managing a Vault A guide for traders or strategy designers on how to responsibly manage a vault.

  • Depositing into Vault Step-by-step instructions for users to evaluate, select, and deposit into a community vault.


Managed Vaults democratize access to advanced DeFi strategies, allowing passive users to benefit from the expertise of experienced traders while maintaining non-custodial control and system-wide transparency.

Last updated 23 days ago

Creating a Vault
Managing a Vault
Depositing into Vault