# FAQs
Who is the Trade Float Vault for? The vault serves two distinct groups: * Capital providers, including funds, DAOs, and professional stablecoin allocators seeking conservative, trade-linked returns. * Treasury operators, including exporters, importers, and platforms using Loam to manage payments and settlement. Capital providers allocate into the vault passively. Treasury operators use the vault operationally to support trade workflows.
Is this only for existing Loam users? No. Capital deposited into the Trade Float Vault may originate from DeFi-native sources or from trade operations. Capital does not need to originate on Loam. All capital, regardless of source, is deployed into verified trade-linked activity under the same vault rules.
Where does the yield come from? Returns are generated from real economic activity associated with global trade, including: * trade receivables * pre-financing of verified trade flows * inventory-linked financing * settlement and payments float The vault does not rely on token emissions, incentive programs, or synthetic yield mechanisms.
Is this a DeFi product? Yes but not in the sense of retail yield farming. The Trade Float Vault is DeFi because: * assets are held and accounted for on-chain * treasury rules are enforced by smart contracts * settlement is on-chain and programmable * transparency is native * integrations and composability are possible
Is capital guaranteed? No. Participation in the Trade Float Vault involves exposure to real economic activity and carries credit, liquidity, and operational risk. The vault is designed to make risks explicit, constrained, and observable, but returns are not guaranteed.
How liquid is the Trade Float Vault? The vault operates with defined liquidity terms aligned with the duration of underlying trade exposures. Key features include: * a minimum holding period of 30 days * redemptions governed by the maturity profile of deployed assets * an orderly withdrawal processes The vault is not designed for instant, on-demand liquidity.
What happens if many users redeem at once? Redemptions are processed according to vault rules and available liquidity. The vault is designed to avoid forced liquidation of assets to meet withdrawals. In stressed conditions, redemptions may be delayed or throttled to preserve capital integrity.
What is loUSD (or loEUR)? loUSD and loEUR are receipt tokens issued to depositors. They: * represent a proportional claim on vault assets * do not rebase * accrue yield through changes in token value over time * are redeemable at par, subject to vault terms They are accounting instruments, not payment or governance tokens.
Can I spend loUSD? No. loUSD represents ownership of vault assets. It is not designed to be used as a payment token. Payments and settlement are executed using the underlying stablecoins held by the vault, not the receipt token.
Who can move or spend the underlying stablecoins? Underlying stablecoins are moved only through vault-level actions, such as: * deployment into trade exposures * settlement payments executed by authorised treasury operators All movements are subject to role-based permissions, approvals, and whitelisting. Capital providers do not initiate payments.
Is leverage used? No. Capital is deployed on a fully funded basis. The vault does not employ leverage or borrowing to amplify returns.
Are there token incentives or reward emissions? No. Returns are generated from trade and settlement economics, not from token issuance, incentives, or promotional reward programs.
How are risks managed? Risk is managed through: * predefined asset eligibility criteria * concentration limits * credit oversight processes * liquidity alignment * operational controls * structural and legal protections Details are outlined in the Risks & Safeguards section.
What happens if Loam or Agridex fails? Vault assets are segregated from operating entities and are intended to be bankruptcy-remote, subject to applicable legal structures. Structural protections and circuit breakers are designed to limit contagion from operator-level issues.
Is the Trade Float Vault permissioned? Yes. Access is permissioned at the user level and requires onboarding and compliance checks. However, vault accounting, balances, and activity remain transparent and verifiable on-chain.
Can DeFi protocols integrate with the Trade Float Vault? The vault is designed to be open at the protocol level. While user access is permissioned, the underlying architecture supports programmatic integration and composability, subject to compliance constraints.
How is this different from a typical DeFi lending pool? The Trade Float Vault differs in several key ways: * capital is deployed into real trade-linked activity * liquidity is aligned with asset duration * controls and governance are explicit * yield is not incentive-driven * treasury and settlement workflows are first-class feature
--- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://agridex-2.gitbook.io/agridex-docs/more/faqs.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.