FAQ

Q: Where do the yields come from?

A: Our yields come from various DeFi protocols on the Solana ecosystem, which offer diverse yield and arbitrage opportunities. These include funding rate farming, liquidity provision for stable pairs, vanilla lending, and lending loops, arbitrage, and more. Each carries unique risks and is rigorously monitored to optimize returns.

Q: Are the yields sustainable?

A: Our yields depend on external sources and remain sustainable as long as these sources exist. However, we expect yields to diminish over time as markets become more efficient and competition increases.

Q: How can you offer a fixed yield?

A: We maintain a Compound Fund to buffer against revenue fluctuations. While the yield is fixed during each Elemental Epoch, it may be adjusted between epochs. We aim to minimize adjustments and ensure stability for our depositors.

Q: What is an Elemental Epoch?

A: An Elemental Epoch is a 5-day period during which yields are fixed. Epochs start and end at 0200h UTC. View a sample schedule here: Elemental Epoch.

Q: Will Elemental’s yields decrease over time?

A: Not necessarily. While market yields may decline, Elemental compounds a portion of its gains. Over time, this compounding effect can lead to rising yields, assuming other factors remain constant.

Q: When can I deposit?

A: Deposits are accepted as long as our funds have capacity. New deposits activate at the start of the next epoch. To prioritize competitive yields, we limit fund capacity. If the funds are full, we appreciate your patience.

Q: When can I withdraw?

A: You may initiate a withdrawal anytime. However, your deposit will need to complete a full Elemental Epoch after your initiation request. For example, if you initiate a withdrawal on 2 Dec, you will need to wait for the full epoch (5 Dec - 10 Dec) to complete; your funds will be available on 10 Dec. This delay is necessary for us to unwind more complex positions that may require many days.

Q: Do I earn yields while waiting to unstake?

A: Yields are not accrued during the unstaking epoch. However, yields for the current epoch are credited at its start. For example, if an epoch runs from 5 Dec to 10 Dec, yields for this period are credited on 5 Dec. The unstaking epoch allows for proper management of your investment.

Q: Is there a risk of losing money with Elemental?

A: Yes. Like any financial vehicle, investing with Elemental carries risks. Potential threats include protocol exploits, token depegging, bridge hacks, and more. Our team actively monitors conditions to mitigate risks, but we encourage you to review our Risk Disclosures for more details.

Q: What happens if the fund incurs losses?

A: Elemental has two primary safeguards: 1) Insurance Fund - Covers initial losses. 2) Compound Fund - Provides an additional layer of protection. If losses exceed these safeguards, the remaining amounts will be distributed proportionally among affected depositors. Please refer to our Risk Disclosures for more information.

Q: Are your smart contracts audited?

A: No. Our processes are manually executed and not governed by smart contracts, so there is no code to audit. We focus on strong internal controls and risk management. All investments are conducted on-chain on Solana, ensuring full transparency.

Q: How does Elemental cover its operational costs?

A: Elemental's model is designed for long-term growth and sustainability. After fulfilling user yields and other obligations, remaining profits are used for operational costs, such as staff salaries. For a visual breakdown here.

Q: I'm interested! How do I get started?

A: We’re excited to have you onboard! Visit elemental.fund to deposit and begin your journey with Elemental.