Port Vaults

Curated capital allocation vehicles deploying across multiple Port Markets

Port Vaults are curated capital allocation vehicles that deploy across multiple Port Markets. Each Vault is managed by a professional Curator who defines the investment strategy, selects eligible Markets, sets allocation parameters, and manages ongoing portfolio construction — enabling diversified private credit exposure through a single allocation point.

Vaults are designed for investors who want managed, diversified credit exposure without the operational complexity of selecting and monitoring individual Markets.

How Vaults Work

Port Vaults accept capital from investors and deploy it across a curated set of Port Markets, according to the Curator's pre-defined strategy. The Vault holds tokenized positions in multiple Markets, and the Curator actively manages the portfolio within defined risk parameters.

Capital Flow

Investors → Vault → Market A (30%)
                  → Market B (25%)
                  → Market C (20%)
                  → Market D (15%)
                  → Idle Capital (10%)

Collections from Markets → Vault → Redeployed or distributed to investors

1. Investors deposit stablecoins into the Vault.

2. The Curator allocates capital across eligible Markets according to the Vault's strategy and allocation weights. Allocations are submitted to each Market's deposit queue and processed at epoch end.

3. Markets deploy capital into underlying credit assets as described in the Port Markets documentation.

4. Collections flow back from Markets to the Vault as underlying assets mature and are repaid.

5. Capital is recycled - the Curator redeploys returned capital into Markets or holds idle liquidity for redemptions.

6. Investors redeem by withdrawing from the Vault — either instant (from the Vault's liquidity buffer, subject to a fee) or standard (via redemption requests on the underlying Markets' withdrawal queues).

Vault Architecture

Port Vaults are built on a role-based architecture. The Curator is the single professional entity responsible for both strategy and execution: they define the Vault's investment mandate and risk parameters, and they execute capital deployment, rebalancing, and liquidity management within those bounds. A Guardian role provides emergency oversight independent of the Curator.

The Curator manages the Vault end-to-end: defining Market selection, allocation caps, and risk parameters (strategy), then executing capital deployment, rebalancing, and liquidity management within those bounds. Curators earn management fees (annualized percentage on AUM) and performance fees (percentage of returns above a hurdle rate). Fee structures are defined at Vault creation and transparently published.

See Curators for full details on the Curator role, vetting process, governance framework, and fee structures.

Vaults do not maintain their own deposit or withdrawal queues. Allocation and redemption flow through the underlying Markets.

Concentration Management

Vaults provide a second layer of concentration management on top of the limits already enforced at the individual Market level.

Absolute Caps

The Curator can set fixed maximum exposure amounts for risk factors shared across Markets:

• Per-Market cap: Maximum capital deployed to any single Market (e.g., no more than $2M to any individual Market).

• Per-originator cap: Maximum exposure to Markets from the same originator.

• Asset-type cap: Maximum exposure to a specific facility type (e.g., no more than 40% of the Vault in forward flow agreements).

Relative Caps

Deposits & Withdrawals

Deposits

Investors deposit stablecoins into the Vault and receive Vault tokens representing their pro-rata share of the Vault's total assets. As the Vault earns yield from its Market positions, the value of the Vault token appreciates — reflecting accrued returns net of fees.

Withdrawals

Vaults support two redemption paths:

Instant redemption: Filled from the Vault's liquidity buffer. Available when the buffer has sufficient capacity. A fee applies.

Standard redemption: Fulfilled via redemption requests on the underlying Market(s), following each Market's withdrawal queue. Each Market has its own epoch period and curators choose which markets to withdraw from. Requests are submitted during the redemption period and processed at the epoch boundary. If redemption requests exceed available liquidity at the Market level, processing is pro-rata (pari-passu).

1

Withdrawal Request

The investor submits a withdrawal request (instant or standard) during the current epoch.

2

Processing

Instant: Filled from the Vault's liquidity buffer (a fee applies). Standard: Requests are submitted to the underlying Markets per their withdrawal queues; Markets process at epoch end, pro-rata if needed.

3

Settlement

Instant redemptions settle immediately; standard redemptions are settled when the underlying Market(s) process the requests, typically in their next epoch. If redemptions are split across multiple Markets, settlement happens on a pro-rata basis.

Vault Transparency

Each Vault provides real-time transparency into:

• Portfolio composition: Current allocation across Markets, including amounts deployed, idle capital, and pending withdrawals.

• Performance metrics: Historical and current yield, net of fees and losses.

• Risk exposure: Breakdown by geography, originator, asset type, and facility type.

• Curator actions: A log of allocation changes, cap adjustments, and rebalancing events.

• Fee accrual: Transparent tracking of management and performance fees.

All portfolio data is accessible on-chain and through the Port platform interface.