Vault Setup

Vaults at Markov Labs are structured to provide secure, efficient, and research-driven management of capital. Each vault is designed with clear roles, robust operational controls, and parameters informed by detailed risk assessment.

Wallet Structure: All vault wallets are maintained internally by Markov, ensuring that control remains within the curated system. Each wallet has clearly defined roles:

• Owner (Curator): Responsible for high-level governance and oversight, including approving major vault actions and coordinating strategy evolution.

• Allocator (Bot): Automates day-to-day portfolio management, executing allocation adjustments, rebalances, and other operational tasks in line with defined strategies (see Systematic Allocator).

• Guardian: Acts as an additional oversight mechanism, capable of pausing or intervening in operations if necessary. In the future, we will introduce a third party guardian to decentralize this role, further enhancing transparency and resilience.

Risk-Informed Parameters: Vault operations are guided by parameters derived from Markov Labs’ extensive risk research. This includes the setup of Loan-to-Liquidation Value (LLTV), the oracle and the market caps (secondarily guided by the Research Phases). By setting proper parameters based on our Risk Framework, the protocol ensures that allocations remain aligned with both market conditions and internal risk appetite.

Performance and Fees: Vaults are designed to be competitive with relevant market benchmarks. Management fees and performance structures are calibrated to provide alignment with investor interests by remaining attractive relative to comparable products in the DeFi ecosystem.