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FAQ

Frequently asked questions about Unbound.

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General Questions

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What is Unbound?

Unbound is a Delta-Neutral BTC Yield Vault that earns yield by capturing funding payments on perpetual futures. Users deposit wBTC and earn passive income without directional exposure to BTC price.

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How does it generate yield?

On perpetual futures exchanges, traders pay funding rates every hour. When funding is positive (~84% of the time), long traders pay short traders. Unbound opens short positions to receive these payments.

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Is this delta-neutral?

Yes. The vault uses a 50/50 strategy:
  • 50% kept as wBTC in the vault (LONG exposure)
  • 50% converted to USDC → deposited to Extended → opens SHORT
The short position matches the wBTC value, creating a market-neutral position with net 0 BTC exposure.

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What’s the expected APY?

APY depends on current funding rates:
Market ConditionFunding RateAPY
Low demand0.001%/hr~4%
Normal0.0015%/hr~6%
High demand0.003%/hr~12%
APY varies with market conditions. Only 50% of your deposit generates yield (the short position).

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Deposits & Withdrawals

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What token do I deposit?

You deposit wBTC (wrapped Bitcoin on Starknet).

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What happens to my deposit?

  1. 50% is kept as wBTC in the vault
  2. 50% is swapped to USDC and deposited to Extended
  3. A SHORT position is opened to hedge the wBTC

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How long do deposits take?

Processing takes ~2-5 minutes:
  1. Vault receives wBTC (~instant)
  2. Swap to USDC (~30 seconds)
  3. Backend deposits to Extended (~1-2 minutes)
  4. SHORT position opens (~30 seconds)

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How long do withdrawals take?

Withdrawals can take 5-15 minutes:
  1. Request withdrawal (instant)
  2. Backend closes proportional position
  3. USDC withdrawn from Extended
  4. Vault swaps USDC → wBTC
  5. You receive wBTC

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What token do I receive?

You receive wBTC, same as you deposited.

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Is there a minimum deposit?

Yes, 0.00025 wBTC (~$25 USD) to ensure the SHORT position meets Extended’s minimum trade size.

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Strategy Questions

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What exchange does Unbound use?

Extended Exchange - a perpetual futures platform on Starknet with validity proofs.

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What leverage is used?

The account uses 2x leverage which affects margin requirements but not APY.
  • Short position size = wBTC value (50% of deposit)
  • Leverage allows using ~50% of margin for the position
  • The remaining margin acts as a safety buffer against liquidation
Important: Higher leverage does not increase yield. Only the position size determines funding payments.

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Can I lose money?

Yes, scenarios where returns could be negative:
  • Extended periods of negative funding
  • Exchange issues or hacks
  • Extreme price moves before rebalancing
See Risk & Security for details.

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What are the fees?

  • Swap fees: ~0.3% on deposit/withdrawal (AVNU)
  • Trading fees: ~0.05% (Extended)
  • Performance fee: TBD

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Technical Questions

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Are my funds custodied?

Partially:
  • wBTC in vault: On-chain, under contract control
  • USDC on Extended: Exchange custody (risk)

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How does funding work?

Extended calculates funding every hour: 
Funding Payment = Position Size × Mark Price × Funding Rate
If rate is positive, your SHORT receives payment.

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What if funding goes negative?

The PositionManager monitors funding rate. If it drops below -0.01%, it closes positions to avoid paying. Positions reopen when funding recovers.

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Is the code open source?

Yes. All contracts and backend code on GitHub.

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Troubleshooting

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My deposit is stuck

  1. Check transaction on Voyager
  2. Deposits are processed every 30 seconds
  3. Contact support if >10 minutes

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I can’t withdraw

  1. Ensure you have shares (check “Your Position”)
  2. Withdrawals process every 30 seconds
  3. Wait for “Ready” status, then click “Complete”

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The APY seems wrong

APY shown is based on current funding rate. The 30-day average is shown in the tooltip. Actual returns depend on funding during your holding period.