> ## Documentation Index
> Fetch the complete documentation index at: https://docs.meteora.ag/llms.txt
> Use this file to discover all available pages before exploring further.

# What is Dynamic Vault?

> Understand Meteora Dynamic Vault as a legacy single-asset vault program for LP shares, strategy allocation, locked profit, and performance-fee accounting.

Dynamic Vault is Meteora's legacy single-asset vault program. A user deposits one SPL token into a vault, receives vault LP tokens, and later burns those LP tokens to withdraw a proportional share of the vault's unlocked token value.

For rebalance vaults, liquidity can also be deployed from the vault reserve into approved strategy accounts. The program handles the on-chain accounting: deposits, withdrawals, LP minting and burning, strategy allowlisting, total liquidity updates, locked profit, performance-fee minting, and permission checks.

<Info>
  Dynamic Vault runs on the mainnet program `24Uqj9JCLxUeoC3hGfh5W3s9FM9uCHDS2SG3LYwBpyTi`.
</Info>

## What Dynamic Vault Does

<CardGroup cols={2}>
  <Card title="Single-Token Vaults" icon="vault" iconType="solid">
    Each vault is tied to one token mint. The vault reserve token account and LP mint are program-derived accounts for that vault.
  </Card>

  <Card title="LP Share Accounting" icon="receipt" iconType="solid">
    Deposits mint LP tokens, withdrawals burn LP tokens, and share calculations use the vault's unlocked amount.
  </Card>

  <Card title="Approved Strategies" icon="list-check" iconType="solid">
    Rebalance vaults can hold up to 30 strategy accounts. Strategy deposits and withdrawals must use a strategy already recorded on the vault.
  </Card>

  <Card title="Profit Locking" icon="lock" iconType="solid">
    Profit reported during strategy actions is added to locked profit and released over time before it becomes part of the unlocked amount.
  </Card>

  <Card title="LP-Token Fees" icon="percent" iconType="solid">
    Profitable strategy actions can mint vault LP tokens to the configured fee vault instead of transferring underlying tokens out.
  </Card>

  <Card title="Admin and Operator Roles" icon="key" iconType="solid">
    Admins manage vault configuration and strategies. The admin or configured operator can submit strategy rebalances and reward claims.
  </Card>
</CardGroup>

## Vault Types

The program supports two vault types.

| Type            | Program behavior                                                                                                                                                                          |
| --------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Rebalance vault | Uses Meteora's configured base address, can enable or disable deposits, can set an operator, can configure a fee vault, can add strategies, and can rebalance into supported strategies.  |
| Idle vault      | Uses the default base address and holds all liquidity in the vault reserve. Strategy, operator, enable, fee-vault, and admin-management instructions are constrained to rebalance vaults. |

Most Dynamic Vault product documentation refers to **rebalance vaults**, because those are the vaults that can send liquidity to lending strategies.

## Lifecycle

<Steps>
  <Step title="A vault is initialized for one token mint">
    The program creates the vault account, token vault, and LP mint. The LP mint uses the same decimals as the underlying token mint.
  </Step>

  <Step title="Users deposit the underlying token">
    Deposits transfer tokens into the token vault and mint LP tokens to the user. Deposits fail when the vault is disabled or when the minted LP amount is below the user's minimum.
  </Step>

  <Step title="Approved operators rebalance strategies">
    For rebalance vaults, the admin or operator can move liquidity between the token vault and an approved strategy account.
  </Step>

  <Step title="The program updates profit, loss, and fees">
    After a strategy action, the program compares before and after liquidity, updates total amount, records gain or loss, updates locked profit, and mints performance-fee LP tokens when applicable.
  </Step>

  <Step title="Users withdraw by burning LP tokens">
    Withdrawals calculate the user's share of unlocked value. A direct withdrawal uses the token vault; a separate withdrawal path can pull from a strategy first when reserve liquidity is short.
  </Step>
</Steps>

## Current Strategy Support

The `StrategyType` enum contains legacy names from earlier integrations, but most variants now return unsupported behavior. In the current source code, the external lending strategy handler implemented for active deposits and withdrawals is `JupLend`.

<Note>
  The `Vault` strategy handler exists for internal compatibility, especially the advanced strategy-removal path, but it is not a yield destination for new strategy deposits.
</Note>

## Risk Considerations

Dynamic Vault reduces some operational risk by keeping strategy actions inside program-approved flows, but it does not remove the risks of yield-bearing vaults.

| Risk           | What to understand                                                                                                                  |
| -------------- | ----------------------------------------------------------------------------------------------------------------------------------- |
| Variable yield | Returns depend on connected lending markets, utilization, available strategies, and operator timing.                                |
| Strategy risk  | Liquidity deployed through a strategy is exposed to the connected lending protocol and its account state.                           |
| Liquidity risk | Withdrawals depend on liquidity in the token vault or what can be withdrawn from a strategy at that moment.                         |
| Operator risk  | Hermes or any configured operator can only use approved flows, but delayed or poor rebalancing can still affect allocation quality. |
| Program risk   | Dynamic Vault, its strategy handlers, and connected programs can carry smart contract and integration risk.                         |

<Warning>
  Yield is not guaranteed. Risk controls and permission checks bound what the vault can do, but they do not make lending strategies risk-free.
</Warning>

## Product Building Blocks

<CardGroup cols={2}>
  <Card title="Hermes" href="/legacy-products/dynamic-vault/hermes/what-is-hermes" icon="robot">
    Understand the off-chain operator role and how it interacts with the on-chain vault constraints.
  </Card>

  <Card title="Dynamic Vault Access and Limits" href="/legacy-products/dynamic-vault/access-and-limits" icon="key">
    Review vault accounts, roles, instructions, token support, strategy limits, and important constraints.
  </Card>
</CardGroup>

<CardGroup cols={1}>
  <Card title="Dynamic Vault Formulas" href="/legacy-products/dynamic-vault/formulas" icon="calculator">
    See the formulas for LP shares, unlocked amount, locked profit, strategy profit and loss, and performance fees.
  </Card>
</CardGroup>

<Note>
  Dynamic Vault is a legacy product. Supported strategies are limited by the deployed program and current operator configuration.
</Note>