Skip to main content
Hard Cap
Updated over 10 months ago

What is a Hard Cap?

A Hard Capacity (Hard Cap) refers to the maximum amount that a particular investment strategy can accept from clients which is measured in the strategy coins. This limit is established to ensure the effective operation of the strategy and risk management.

If a strategy achieves its Hard Cap there is no possibility for clients to make a deposit until the amount wouldn't be changed or current TVL (Total Value locked) will decrease.

Why is a Hard Cap set?

  • Platform and Service Limitations: Some centralized exchanges and DeFi services, where our strategies operate, have restrictions on transaction volumes or liquidity, necessitating the setting of a Hard Cap.

  • Strategy Efficiency: Increasing excessively large investment volumes can reduce the efficiency of the strategy or lead to undesirable changes in market dynamics.

Where can I view the Hard Cap value?

The Hard Cap value is displayed on the page of each investment strategy.

You can also see the current amount of funds in the strategy, allowing you to track progress towards the upper limit - the Hard Cap.

Hard Cap is not reached:

Hard Cap is reached:

What happens if my deposit exceeds the Hard Cap?

If your deposit into the strategy exceeds the Hard Cap, the excess portion of funds will be directed to your Wallet.

The Wallet is designed to store funds without risk or income, and also for coins swapю

Did this answer your question?