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FAQs
All your questions about our offerings answered
Is Olive audited?
Yes, Olive has been audited by Peckshield. This ensures the safety and sturdiness of our smart contract aspects that most of our users interact with. You can find Peckshieldâs audit report here.
Is the APY calculated after deducting management and performance fees?
Yes.
Whatâs the difference between APR and APY?
APR (Annual Percentage Rate) is the yearly return. If you invest $100 with 100% APR, you will make $100 in returns in a year. APR does not include compounding effects that occur from reinvesting amplified yields.
If you, however, reinvest your yields regularly, which is what we do at Olive, you will compound your returns. This compounded earning, calculated over a year, gives you your APY (Annual Percentage Yield). The more often you compound your returns, the more significant the difference between APR and APY will be.
How can I find out how much earnings I have accumulated?
Your rewards are added to your deposited token amount on each compound cycle. You can see the current value of your investments in the portfolio section of our dApp.
What are the risks?
Each strategy has its own risks. You can view each strategy's risks in its respective vault. All vaults are subject to smart contract risk, for which Olive has undergone an audit from PeckSheild. You can find the full audit report here.
What are the fees associated with Olive vaults?
We charge a 2% management fee on a prorated basis and a 10% performance fee if the cycle is profitable.
At what time do the vaults rollover?
All the vaults rollover at 1:30 PM UTC weekly on Monday, except for Fixed Coupon Notes, which rollover every 28 days.
What is the minimum deposit for vaults?
There is no minimum deposit to participate in our vaults.
Do I have to re-deposit on vault expiry?
No. All our vaults automatically roll over your funds and the yield earned for auto-compounding.
Are deposits subject to the profit or loss of the previous cycle?
No.
Does Olive have a token?
Does Olive use leverage to generate returns on any of its vaults?
No.
Does Olive have a liquid deposit token?
What asset do I get on withdrawal?
Your withdrawals are processed in the same asset that you deposited.
Help! I am having trouble using the app.
What are Principal Protected Vaults?
The name Principal Protected Vaults (PPV) is exactly what it suggests. Your deposited funds are never exposed to principal or credit risks, i.e., you can always withdraw the same amount of assets you deposited no matter what. PPVs are investment instruments that employ a combination of DeFi native strategies to optimise base yields and then use those yields to run structured product strategies.
With Olive, instead of manually harvesting and auctioning the yields to market makers, buying more tokens, and reinvesting that, a PPV does all that automatically. Using a PPV to amplify your yields saves numerous transactions, gas costs associated with it, and your time.
PPV is at the core of Olive. In a PPV, you earn more of the asset you deposit. For example, in the GLP Vault, where one deposits GLP, the investors earn more GLP over time, effectively growing their share in the GLP pool and thus allowing for more fees and rewards and, therefore, even more, amplified yield over time.
Summarising, PPV can:
- Put any asset to work to generate yield
- Efficiently optimise the base yields
- Amplify the optimised base yields into more initially deposited tokens by running structured product strategies
- Automatically reinvest earned tokens for auto-compounding
Users can sit back and relax and watch their tokens grow.
How does Principal Protected Vaults protect my principal?
PPVs optimise the base yields on any asset in a DeFi native manner. For example, with GLP, we use Beefy protocol to convert ETH and esGMX into even more GLP automatically. We then only use Beefy's yield component to run structured product strategies. Since only the yield component is used to run structured product strategies, user deposits never get exposed to market risk, and since we donât lend, there is also no credit risk.
What is the observation time for structured products used by Olive?
All our strategies run for a week. For range-accrual, the observation time is 8 AM UTC daily; for twin-win, it is 8 AM UTC every Monday.
How do withdrawals work for Principal Protected Vaults?
Despite what the name 'Vault' suggests, there is no lock-in. One could always withdraw from a PPV at any moment in time. Olive does not own user funds deposited in PPV. However, it is best to view PPV as an investment tool to store funds for the medium to long term to kick in the effects of compounding.
What is reserve balance, and can I withdraw it?
The reserve balance refers to the base yield harvested to run structured product strategies. At vault rollover, which occurs on Mondays at 1:30 PM UTC, the base yield from the previous to previous cycle and the amplified yield from the just-completed cycle becomes available for withdrawal. Post vault rollover, the base yield from the previous cycle is designated as the reserve balance since it is now being deployed to run structured product strategies.
Will I earn amplified yield if I deposit in between cycles?
We only harvest yields on Monday from deposits which have completed one full cycle to run yield amplification strategies. However, you will still earn optimised base yields. You will start earning amplified yields once you have completed one full cycle.
Will I earn yields if I withdraw in between cycles?
If you withdraw between cycles, you will lose out on the optimised base yields and amplified yields for the ongoing cycle.
How often do the Principal Protected Vaults harvest yields and run structured product strategies?
PPV harvests yields earned from depositing assets in the underlying platform each Monday and use it to run structured product strategies on the same day. The amplified yield is reinvested into the respective PPV on the subsequent Monday, setting the auto-compounding mechanism into motion.
Why can't someone do this themselves?
One could optimise the base yields. However, our PPV helps you save on personal time and transaction fees, self-optimize for the best possible structured product strategies, and automatically reinvest amplified yields. Attempting to do this manually would result in significant inefficiencies and risks; it would involve numerous transactions, and not everyone is adept with complex structured product strategies. Additionally, market makers do not work with retail investors because of the limited ticket size.
What risks does the Principal Protected Vaults have, and what is the maximum potential loss?
PPV has no principal risk; only the base yields are used to run structured product strategies. Also, yields earned in all previous cycles get treated as principal in the current cycle, which means they will not be used for yield amplification, ensuring incremental principal protection.
PPV is also resistant to credit risk as users' funds are never lent out.
However, there is a risk of smart contract failure in the underlying vault or the protocols we work with. Olive has undergone an audit by PeckShield to mitigate smart contract risk.
The maximum potential loss in Olive is limited to the yields earned in a cycle and the potential net settlement amount due from market makers.
What are Non-Principal Protected Vaults?
Non-Principal Protected Vaults collectively refer to strategies such as Covered Calls, Cash-Covered Puts and Fixed Coupon Notes. These strategies earn high yields, but your deposited assets can get exposed to market risk in the case of Covered Calls and Cash-Covered Puts and to both market risk and credit risk in the case of Fixed Coupon Notes.
How long is the cycle for Non-Principal Protected Vaults?
For covered calls and cash-covered puts, cycles run weekly every Monday from 8 AM UTC to 8 AM UTC. In the case of Fixed Coupon Notes, the cycle runs from 8 AM UTC but is 28 days long. If the Fixed Coupon Note gets knocked out prematurely, the Fixed Coupon Note is re-auctioned for the remaining cycle duration.
How does withdrawal work?
We offer two types of withdrawals when it comes to non-principal protected vaults:
- Instant: Only applicable to funds that are yet to be deployed in the vault. You can withdraw it anytime until the funds get deployed on the vault auction date.
- Standard: It's a two-step withdrawal process that you can initiate anytime. You can submit a withdrawal request, and the funds will become available for withdrawal at the end of the ongoing cycle.
Are instant withdrawals subject to any profit or loss of the week?
No.
Are standard withdrawals subject to any profit or loss of the week?
Yes, since you are initiating a withdrawal for vault shares, those shares are subject to either the profits or losses of that epoch, which will impact the final withdrawable amount.
Can I cancel a standard withdrawal request?
Unfortunately, you can't cancel a standard withdrawal request.