Yield Vault

townSquare Vault is a yield-bearing vault built on ERC4646. You deposit an underlying asset and receive townSquare shares. The yield is produced by a trading strategy operated offchain, and profit or loss is reported back to the vault periodically. Your shares gain (or lose) value as those reports land; the number of shares you hold does not change.

Profit arrives gradually, not all at once. When a profit is reported, it is released into the share price linearly over the vesting period rather than instantly. This stops someone from depositing just before a report and capturing yield they were not exposed to. Practically: a reported profit raises your position's value smoothly over the following days.

Depositing

Standard ERC-4626. Approve the vault, then deposit.

• There is no deposit fee. Entering the vault is free; the fee is charged only on exit.

• There is a minimum deposit size, expressed in shares (minSharesInVaultToken). Very small deposits revert.

• Your assets do not stay in the vault. They are forwarded immediately to the Manager contract, which deploys them to the strategy. This matters for withdrawal — see below.

Withdrawing

This is the part that differs from a normal vault. Withdrawal is a two-step process with a waiting period, and you cannot skip it.

Step 1 — request

requestRedeem(uint256)

What happens the moment you call this:

• Your shares are burned immediately.

• The asset amount you will receive is calculated and locked in now, at the current share price, net of the exit fee.

• A cooldown timer starts.

Step 2 — collect, after the cooldown

Rules that will trip you up

• Your amount is fixed at request time. Once you request, you are no longer exposed to the share price. If a profit is reported during your cooldown you do not receive it. If a loss is reported you are not affected. Requesting is an exit from the strategy, not a queued sale.

• One request at a time. requestRedeem reverts if you already have a pending request. You cannot add to it, and there is no cancel function — once requested, you are committed to that amount.

• You must call withdraw/redeem yourself. The vault requires the caller to be the owner of the request. Approving another address does not let it withdraw for you — this intentionally breaks the standard ERC-4626 allowance flow.

• The amount must match exactly. redeem(shares) requires shares to equal your request's stored share count exactly; withdraw(assets) requires an exact asset match. Partial collection is not supported. Read your request and pass the stored value back.

• There may be a cap on the size of a single request (maxRedeemCap). If your position exceeds it, exit across multiple requests, one after another.

Fees

You pay one fee as a depositor: the exit fee, charged when you request a redemption. It is capped at 1% and is deducted from the amount you are quoted.

There is no deposit fee and no ongoing management fee.