There are 2 modes for the Alpha Vault:

  • Pro Rata Mode
  • FCFS Mode (First Come First Serve)

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Pro Rata Mode

In Pro Rata mode, the Alpha Vault is able to accept unlimited deposits of SOL or USDC, even exceeding the Alpha Vault Max Buy Cap.

After depositing SOL or USDC, depositors can choose to withdraw anytime before the end of the deposit period if they change their mind.

Once the deposit period ends, users can no longer deposit more SOL or USDC or withdraw their earlier deposit. The vault becomes active and after a short buffer period, will begin using the funds collected to buy tokens from the pool.

However, the Alpha Vault would only buy tokens up to the max buy cap. As such, if the deposits by users into the Alpha Vault had exceeded the max buy cap, there will be unused funds, and they can be withdrawn by depositors.

For example, you deposited 100 USDC and TVL in the vault (total deposited) is 10M USDC, but the vault max cap is 1M USDC. Only 1/10th of your USDC deposit will be used to purchase tokens. 90 USDC from your 100 USDC deposit will be unused and returned to you.

All vault users get their tokens at the same price and the amount of tokens received is proportional to your share of the total amount of SOL or USDC deposited.

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FCFS Mode

FCFS (First Come First Serve) follows a similar process to Pro Rata mode, but with the following differences:

Unlike Pro rata mode, in FCFS mode, during the deposit period, Alpha Vault max buying cap = max amount of deposits the Alpha Vault accepts. Users can deposit as much as they want initially, but as soon as the vault’s reserve reaches the deposit/buy cap, then no one can deposit more (TVL cannot exceed Vault Max Cap). In other words, deposits are first come first served, up to the Alpha Vault max deposit/buy cap.

For example: If Vault Max Cap is 1M USDC, and a single user is the first to deposit 1M USDC right when deposits open, the vault gets fully filled and no longer accepts further deposits.

By default, each user has no individual deposit cap, which means a single user can technically fill up the entire Alpha Vault deposit/buy cap. However, if required, the project can specify an individual user cap and/or submit a whitelist to allow only certain wallets to deposit.

Once a user deposits funds, the user cannot withdraw them, even during the deposit period.

In FCFS mode, there won’t be any unused USDC or SOL. All deposits would be used to buy the token.

After the Alpha Vault buys the tokens, all depositors will also get tokens at the same average price.