Table of contents

Valio is a talent discovery marketplace connecting traders to capital. On Valio you can bet on traders and asset managers without needing to trust them. Let them allocate funds for you in a secure and non-custodial way. No lockups, withdraw any time!

For traders and asset managers, Valio is a way to make money by trading on behalf of others. Build a public track record and use that to attract more capital, earning more fees. Anyone can become a vault manager - it’s permissionless

1. Create a public track record - you can start from 0

You can start by trading with your own capital. If you do well, people will notice you and deposit into your vault. When they do, you’ll earn fees with no extra effort

2. Already a seasoned trader with a following? Monetise it on Valio!

Let your followers bet on you and win together!

3. Create private whitelisted vaults only accessible to those you invite

Pool together capital with friends and partners, and form a community

Step 1: In the “Manage” section on Valio.xyz select “Create vault”

Go through the steps to set up and deploy your vault. Make sure you select the right vault permissions, as you won’t be able to change them later (but you can deploy more vaults at any time). For a more advanced explanation understanding of the vault configuration, visit the advanced user guide. Once your settings are complete, create the vault and deploy it on chain.

Step 2: Deposit your own capital or let others know about your vault

A great way to attract more capital initially, is to start by depositing your own funds. This way, you will be able to build a track record and create a name for yourself. You can also link your social accounts to your vault! With time, let your performance speak for yourself - the better you perform, the more users will discover your vault and deposit in it.

Step 3: Earn and collect fees

Now that you are a successful manager, time to start trading and collecting fees! Management fees can be collected whenever a new depositor deposits into your vault, and performance fees are calculated based on a high water mark. To learn more about how fees and withdrawals work, check out the advanced user guide.

1. What if you discover the next Warren Buffet? Valio lets you do that! Discover and invest in the next generation of trading and asset management superstars!

2. You can achieve a diversified exposure to the asset management industry, from short term leverage traders to long term capital allocators and everything in between.

3. You are in control! Valio is non-custodial and you can withdraw your funds at any time. Advanced security mechanics prevent nefarious managers from running away with your funds!

Step 1: Browse the home page and explore section - find the right vault for you

Make sure you select a vault that’s right for you! Each vault has a different permission template, setting limits on what can be done with your capital. Permission templates range from conservative to high risk, and allow for different integrated instruments, levels of leverage and more. For more on this, check out the advanced user guide.

Step 2: Deposit and set automated exit conditions

Once you’ve found the right vault for you, make sure to set the automated exit conditions. These can be based on stop-loss, take-profit and CPIT conditions. For more info on these, check out the advanced user guide.

Step 3: Withdraw at any time

Valio does not lock up your capital - you can withdraw at any time after the initial 24 hour period, which is designed to prevent manipulation. You can either withdraw in-kind (a % of each asset that the manager has in the vault) or have your stake be converted into a single token such as USDC or ETH on withdrawal.

No! Trusting the manager is not required - this is a core innovation of Valio. The proprietary CPIT security framework provides guardrails against managers interacting in a non-desired way with your capital. In summary, the CPIT (which stands for Cumulative Price Impact Tolerance) architecture is a framework that limits the price impact that managers can create with the capital that they manage. The CPIT framework is applied on a per-instrument basis (works differently for spot markets, lending markets and so on). CPIT is expressed as a % of the AUM for any given day. The CPIT value is established on vault creation, and can not be changed. For more details, check out the advanced user guide.

Cumulative price impact tolerance (CPIT) is a mechanism that protects depositors from nefarious vault managers attempting to steal funds through creating artificial market displacement.

For every buy/sell transaction the vault manager performs, they have 3 key variables:

$InitialPrice =$ Price before a transaction

$Amount =$ trade amount

$ExecutionPrice =$ Price at which the trade is executed

For each given transaction:

$PriceImpactLoss$ gives us a simple way to understand how much has been lost in each trade due to price impact created by the trade. In very liquid markets such as ETH/USDC spot, $PriceImpactLoss$ will be very small, whereas the more illiquid a market, the larger this value is going to be.

As a next step, for any given period of time (in the case of Vaults - each day), it can be calculated how much has the vault manager lost due to adverse price impact on trades. This is simply the sum of the individual $PriceImpactLoss$

Now that we know the amount in USD that the vault manager has lost per day due to price impact, we want to express that as a % of the total NAV in their vault. The resulting value we call $CumulativePriceImpact$

$CumulativePriceImpact = TotalPriceImpactLoss/NAV$ , and is expressed in % terms relative to vault size

$CumulativePriceImpactTolerance$ is an instantiated variable upon vault creation that sets the maximum cap for cumulative price impact. Before any trade is executed, the CPIT mechanism is ran to ensure that the daily limit is not violated.

The mechanics described above illustrate the CPIT mechanics as applied to certain spot market structures. The CPIT framework is generally applicable and can be modified to support lending markets, various forms of derivatives and other products. Important to note that the CPIT mechanics are coupled with additional failsafes to ensure that funds can not be stolen via market impact creation.

Valio ensures that vault managers have the needed tools at their disposal to perform, while simultaneously looking to mitigate systemic risks. Key things considered for new integrations:

Being able to withdraw assets at any time is a key feature of Valio. In order to ensure that, there are several considerations that need to be met by integrated protocols

The goal of vaults is to strike a balance between preventing exposure to tail technical risk, while giving vault managers the freedom to take on counter-protocol economic risks, since the latter is frequently rewarded while the former is not.

It’s extremely important to provide vault managers with the tools they need. The vast majority of vault managers can meet their investment allocation needs with access to spot markets, leverage, lending markets, perpetuals, options, select NFT exposure and the ability to underwrite various pools and AMMs. The strategy of Valio is to ensure that all of the most prominent protocols with deep liquidity and volume are integrated with prudence. That said, Valio will not seek to be first in recklessly integrating the new hot thing