Harvesting and compounding

What a harvest does

1. CollectThe vault collects the trading fees its position has earned. If it's staked on up33, it claims its UP rewards instead.
2. Sell the rewardsUP isn't one of the vault's own tokens, so the vault sells it for one of them.
3. Take the fee10% of what was collected goes to Aurum. The other 90% stays in the vault.
4. Add it backThe vault swaps part of it to get the right mix of its two tokens, and adds it to its position in the pool.

After a harvest you have the same number of shares, and each one is worth a little more. Adding earnings back in like this is called compounding. There's nothing for you to claim or do.

When harvests happen

The agent harvests a vault once there's enough to be worth collecting. What the vault has earned since the last harvest must be worth:

• at least $1,
• at least ten times the network fee for the harvest,
• and at least 0.25% of the vault's value.

So a big, busy vault can be harvested several times a day, and a small or quiet one every few days. Aurum pays the network fees for the agent's harvests; they don't come out of the vault.

A harvest also happens:

• Before every deposit, so a new depositor doesn't get a share of what was earned before they joined.
• At every range move, which starts by collecting what the vault has earned.
• Whenever anyone asks. Anyone can trigger a harvest, so earnings still get collected if the agent ever stops.

Adding back waits for calm prices

Adding earnings back in needs a swap in the pool. The vault only swaps when the price is calm, meaning close to its recent average. That way, nobody can push the price for a moment and profit from the vault's swap.

When the price isn't calm, the harvest still collects, but what it collected waits in the vault until a later harvest adds it back. It still belongs to the vault's holders, and a withdrawal pays out your share of it.

Fair to everyone in the vault

• When you deposit, the vault harvests first. What was earned before you joined goes to the people who were in the vault then. Your earnings start from your deposit.
• When you withdraw, you get your share of the vault's position, and of anything waiting in the vault. Earnings that haven't been collected yet stay behind, for the holders who remain. Because vaults are harvested often, that's usually a small amount.

Selling reward tokens

Vaults on up33 earn UP, which they sell at every harvest. Each sale has to get at least 97% of what the UP is worth at recent average prices, after the pools' own fees, or it doesn't happen. The vault's page shows this limit as Max slippage. The vault only sells through up33's own pools.

If a sale can't get a fair price, for example because the pools are too thin, the UP waits for a later harvest. Until it's sold, new deposits into that vault are paused, so newcomers can't get a share of rewards earned before they joined. Withdrawals keep working.