Sigma Vault
Yield is generated through a combination of proprietary algorithmic trading strategies, maker rebate optimization across 13+ perpetual DEXs, and selective DeFi yield opportunities as market conditions dictate. All strategies are actively managed by the Sigma Engine team.
How It Works
- Deposit — Send USDC, USDT, or USDe to the vault wallet address (minimum $500 during closed beta)
- Capital is deployed — Sigma Engine deploys capital across algorithmic trading (market making, HFT, delta neutral arb), maker rebate farming on integrated DEXs, and DeFi yield strategies (PT yield, lending, LP positions) when favorable opportunities arise
- Yield + Points accumulate — Returns from all sources pool and are reflected in your share value (NAV per share). Your capital simultaneously farms airdrop points on every integrated protocol and earns Sigma Engine Points
- Request payout — When you want to collect yield, request a withdrawal. Payouts are sent directly to your wallet — funds never sit on the platform as a balance. This is a security feature: even if the platform were compromised, your yield is already in your wallet
- Token distribution — When any integrated protocol launches their token (TGE), your pro-rata share of accrued points is converted and tokens are sent directly to your wallet
Funds go directly to a hardware wallet for maximum security — no smart contracts.
Deposit Process
- Navigate to the Vault page from the sidebar
- Copy the vault deposit address displayed on the page
- Send USDC, USDT, or USDe to the vault address from your connected wallet
- Supported chains: Ethereum, Arbitrum, or Base
- Select your chain from the dropdown and paste your transaction hash
- Click Confirm Deposit — the system verifies on-chain and issues shares
Shares are issued at the current NAV (Net Asset Value) per share. Your ownership is proportional to the total pool.
Vault Transparency
The vault wallet is publicly viewable. A link to the wallet on DeBank is provided on the Vault page so you can verify holdings and activity at any time.
Track Record
| Month | Return |
|---|---|
| Oct 2025 | +0.6% |
| Nov 2025 | +11.0% |
| Dec 2025 | +15.9% |
| Jan 2026 | -15.8% |
| Feb 2026 | +60.0% |
| Mar 2026 (to date) | +7.01% |
| Cumulative | +84.5% |
A secondary account returned +101.4% over the same period.
Past performance is not a guarantee of future returns. Trading involves risk, including potential loss of principal. The vault may experience temporary drawdowns before recovering.
vs. Traditional Finance
| Benchmark | Return |
|---|---|
| S&P 500 (annualized) | +10.39% |
| Avg. Hedge Fund (annualized) | +11.6% |
| Top Hedge Funds (annualized) | +25% |
| Sigma Engine (5½ months) | +84.5% |
Traditional benchmarks are annualized. Sigma Engine returns are over 5 months of live trading — not a direct comparison, but provided for context.
Fee Structure
| Fee | Amount |
|---|---|
| Management Fee | 1% annually on AUM |
| Performance Fee | 20% on net yield |
| Airdrop Fee | 20% on airdrops received |
| Deposit Fee | 0% |
| Withdrawal Fee | 0% |
| Min. Deposit (Closed Beta) | $500 |
| Deposit Cap | $2,000,000 |
| Lockup | 14 days |
| Withdrawal Processing | 3–5 days after lockup |
| High Water Mark | Yes |
High water mark — Performance fees are only charged on new profits. If the vault draws down and recovers, no fee is charged until it exceeds the previous peak. You never pay fees on the same dollar twice.
How Share Price Works
The vault uses a share-based accounting system, similar to how mutual funds and ETFs work.
On deposit:
- If no trading has started yet, shares are issued at $1.00 each (the starting price)
- If the vault is already trading, shares are issued at the current NAV (Net Asset Value) per share
- Example: You deposit $1,000 when NAV is $1.15/share — you receive 869.57 shares
As the vault trades:
- Trading profits increase the total pool value
- Since the number of shares stays the same, each share becomes worth more
- Example: Vault grows 10% — your 869.57 shares are now worth $1.265 each ($1,100 total)
On withdrawal:
- Your shares are redeemed at the current NAV per share
- The USD equivalent is sent directly to your wallet
- Example: Your 869.57 shares at $1.30/share = $1,130.43 (your original $1,000 + $130.43 profit)
Why shares instead of dollar balances?
- Fair entry at any time — early depositors and late depositors both get fair pricing
- New deposits don't dilute existing holders — you buy shares at current value
- Performance is measured cleanly — share price only goes up when the vault makes money
- High water mark works naturally — share price must exceed previous peak before performance fees apply
Your yield never sits on the platform as a balance. Payouts go straight to your wallet — this is a deliberate security measure. Even if the platform were compromised, your earnings are already in your possession.
Lockup & Withdrawals
- Lockup period: 14 days from deposit
- After lockup: Request a withdrawal from the Vault page — enter the USD amount and click "Request Withdrawal"
- Processing: Withdrawals are processed within 3–5 days after the lockup period and sent directly to your wallet
- Cancel: Pending withdrawals can be cancelled from the Vault page before processing
Early withdrawal: Withdrawals before the 14-day lockup are not available through the platform. In the event of an emergency, contact @xbtpepe on Telegram. Early withdrawals forfeit all accrued yield and may incur additional processing fees.
Your Vault Position
Once you've deposited, the Vault page shows:
- Current Value — Your shares × current NAV per share
- Total Deposited — Sum of all your deposits
- PnL — Dollar and percentage gain/loss
- Shares — Your ownership units
- Deposit History — Every deposit with status, amount, token, chain, and shares issued
- Withdrawal History — Pending and completed withdrawals with dates
Capital Deployment
The vault uses the same production strategies available on the platform:
- Ladder Market Making — Geometric order ladders capturing spread across price levels
- HFT Scalping — Sub-second entries on momentum and microstructure signals
- Delta-Neutral Funding — Captures funding rate differentials across venues with zero directional exposure
- Other Trading Methods — Proprietary pricing strategies exploiting inefficiencies across oracle feeds and on-chain orderbooks
Capital allocation between strategies is fully automated and adjusts based on market regime (trending vs ranging, volatile vs quiet). Rebalancing decisions are reviewed daily.
Trading profits are pooled and distributed proportionally. Airdrops are distributed pro-rata based on share and holding time.
Points & Airdrop Farming
Your deposit doesn't just earn yield — it farms points across every integrated DEX and earns Sigma Engine Points. Points accrue based on:
- Time in vault — The longer your capital is deposited, the more points you accumulate
- Deposit size — Larger deposits earn proportionally more points
- Protocol activity — Each DEX rewards liquidity provision differently; the vault captures all of them
- Vault multipliers — 1.5x point accrual after 30 days, 2x after 90 days. $5K+ deposits held 30+ days get an additional +15% bonus
When a protocol conducts its Token Generation Event (TGE), tokens are distributed to your wallet based on the points your deposit accrued on that protocol.
Note: Points programmes are controlled by the respective protocols, not Sigma Engine. Token distribution timelines and amounts are determined by each protocol at their discretion.
Early Depositor Benefits
Users who deposit during the closed beta receive:
- 15% performance fee for the first 30 days (vs. 20%)
- Bonus yield share for founding depositors
- Priority withdrawal processing
- Accelerated Sigma Engine Points accrual
Early depositors are recognized as founding participants.
Disclaimer
Past performance is not indicative of future results. This is not a financial offering, investment advice, or solicitation. Trading involves risk of loss including loss of principal. Returns shown are from live trading and may not be replicable. All strategies carry inherent market risk.