Fee-backed leveraged positions can lose their full margin.
The reserve cap limits how much of a coin vault can be exposed. It cannot make leverage or a volatile memecoin safe.
A routed position can be liquidated. The 2× cap reduces risk, but the deployed 25% vault slice can still be lost.
Zeta Markets's liquidity, funding, liquidation rules and availability govern the open position.
At least 75% stays outside the position by policy, but custody, conversion and smart-contract failures remain possible.
Vault strategy guardrails
Capped mainnet betaThese limits are checked again immediately before every routed order. This is an unaudited mainnet beta.
| Control | Purpose | Initial value |
|---|---|---|
| Maximum leverage | Limit directional exposure | 2× |
| Maximum vault deployment | Keep most capital outside leverage | 25% |
| Maximum position collateral | Limit beta exposure per coin | $25 |
| Minimum reserve | Preserve liquidity and drawdown capacity | 75% |
| Automatic exit | Bound duration and loss | ±10% / 24h |
| Profit allocation | Burn, buyback, liquidity | 40 / 30 / 30 |
| Conversion cap | Limit each beta fee conversion | $100 |
| Route slippage | Reject routes past this | 1% |
No fresh mark and no passing preflight, no order. The engine calls Zeta Markets's official interface, rejects stale or clamped routes and never retries an ambiguous submission until reconciliation proves its outcome.