Creating a vault
Once successfully onboarded, a portfolio manager can launch a new vault.
PMs can easily create a fund by clicking "Create New Portfolio" at https://app.truefi.io/managers. To test and demo the product, see the guide here: Credit Vault tutorial.
The TrueFi application walks PMs through the vault creation process, as shown in the demo below:
Vault creation parameters and details
In vault creation, PMs are able to configure the following settings (among others):
Capital formation rules
During the Capital Formation period, lenders can commit funds with assurance that the smart contract will return funds (with no fees) if certain requirements are not satisfied. For more details, read here.
Example: PM configures a 30 day capital formation period and minimum vault size of 1M USDC. If the fund has not raised ≥1M USDC by day 30, then principal will be returned to lenders with no fees taken. If the fund raises ≥1M USDC within 30 days, then the PM can move the vault to 'Live' status and deploy loans from the vault.
Tranche configurations
Number of tranches: single tranche / 2 tranches / 3 thranches
Minimum subordination ratios for each tranche
For more details on tranche mechanics, read here.
Vault duration / maturity date
Lender funds will be locked up until the vault's maturity date
All loans within the vault must mature before, or on the maturity date
Fee structure
Vault fee: in basis points, on annualized basis
For more details on fees, read here.
Lender permissions / restrictions
i.e. manager can require KYC or set custom list of allowed lenders
For more details on permissions, read here.
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