vaultsDocumentation

Position eligibility

Implemented

Which assets may be mirrored, and why an unapproved token is excluded from the denominator too.

#Approval is a recorded human decision

An asset is eligible only after a review is recorded onchain in the AssetRiskRegistry, with its decimals cross-checked against the token contract itself.

A token is never approved because of its name. This chain hosts six verified contracts called Quoter, two of them wired to fork factories — a name is not evidence of anything.

#What review covers

CheckWhy
Token behaviourFee-on-transfer, rebasing and blocklisting tokens break pro-rata accounting
Decimals, read from the tokenA mismatch between assumed and actual decimals misprices by orders of magnitude
Canonical poolWhich venue is authoritative for this pair
Liquidity against the floorWhether the pool can absorb a realistic trade
TWAP historyWhether an independent price reference exists at all
Full-size exit quoteWhether the position can be got out of, not just into

#Unapproved assets are excluded twice

An unapproved holding is:

  1. never bought — the sync records AssetNotApproved and moves on; and
  2. excluded from the sizing denominator.

The second is the one that is easy to miss and matters most. If unapproved holdings counted toward the source's portfolio value, anyone could airdrop a source a nominally valuable token and shrink every trade that vault makes from then on. Excluding them removes the lever.

The airdrop case is covered by a test: a token sent to a source without approval is recorded as divergence, never purchased, and does not move the denominator.

#Pausing an asset

An approved asset can be paused. A paused asset is not bought; existing holdings are unaffected and remain fully redeemable in kind.

#What approval does not confer

Approval says an asset is mechanically safe to mirror — that it transfers predictably, prices consistently, and can be exited. It is not an opinion about whether the asset is a good thing to own. Nothing in this system offers one.