Liquidity and vaults
SubLiquid combines risk-bearing market capital, external liquidity and contribution incentives rather than relying on token-market fees alone.
Four complementary capital sources#
- Dedicated capitalization
- Capital assigned specifically to market launch, quoting capacity and reserves, separate from company operating cash.
- External LP capital
- Subscribed vault capital under explicit strategy, NAV, withdrawal and loss-allocation terms.
- Market makers
- Executable quotes and risk-bearing inventory from makers, compensated for the quality of liquidity supplied.
- Creator receipts
- Settled USDC from eligible token-market creator fees, allocated to treasury-funded vault strategies and separate insurance reserves.
These are capital sources in the liquidity strategy, not announced funding or maker commitments. Creator receipts supplement the capital plan; a token's market capitalization isn't available market liquidity.
What the vault does#
Vault strategies use assigned capital to quote and manage inventory across qualified perp markets. Quote size and spread respond to volatility, directional skew, reserved trader liabilities, oracle confidence and hedge costs.
The vault receives realized trader losses and pays profitable trader settlements according to the market's risk model. Strategy PnL is accounted for separately from exchange fees. External LPs bear NAV risk; capital doesn't become risk-free because it sits in a vault.
Allocating capacity across markets#
Capital follows market demand and measured risk. Gross OI, directional exposure, concentration and reserved liabilities constrain each market. Adding a pair requires defensible pricing, liquidation capacity and capital sufficient for the exposure it creates.
The design isn't limited to BTC-USDC or TOKEN-USDC. Correlated markets share portfolio constraints, while a thinly traded exchange token requires stricter pricing and concentration treatment. No illustrative portfolio weights are launch commitments.
Acquiring durable depth#
The maker share of the contribution budget rewards executable depth, competitive spread, uptime and performance when volatility rises. The committed-OI share rewards collateral and time at risk rather than momentary notional.
External LP contributions need explicit attribution within the published scoring rules; they aren't an undisclosed fourth emission stream. Measure retained capital, execution quality and repeat trading after incentive costs as subsidies decline.