How PolyStrat works.

PolyStrat is a non-custodial hedge fund protocolA smart contract system that lets traders manage depositor capital with on-chain guarantees on Polygon PoS. Skilled Polymarket traders create vaults. Depositors back them with USDC.eUSD Coin bridged to Polygon, a stablecoin pegged to $1. Performance fees are split automatically between the trader and the platform.

All deposits and redemptions settle in epochsA cycle where all requests execute together at the same certified price. Everyone gets the same price, in the same block. No front-running is possible by construction.

The trader operates through a dedicated Smart AccountA Polymarket-compatible Safe wallet, separate from the vault, where active trading happens protected by an on-chain GuardA smart contract that restricts the trading wallet to only interact with Polymarket and the vault, making it impossible to divert funds.

1. The trader funds the trading wallet from the vault
2. Trades happen directly on polymarket.com, with the same UX as personal trading
3. The Guard ensures funds can only go to Polymarket trades or back to the vault
4. Before settlement, the trader recalls profits to the vault

Depositors can verify the Guard is active on Polygonscan at any time.

1. Deposit USDC.e: your funds enter a pending silo, separate from trading capital
2. Wait for settlement: the oracle proposes a NAVNet Asset Value, the fair price of one vault share based on all assets, then the trader settles
3. Claim your shares: vault shares represent your stake, and their value tracks the vault's performance

1. Request redeem: your shares are locked until the next settlement
2. Wait for settlement: shares convert to USDC.e at the certified NAV
3. Claim USDC.e: profits included, fees already deducted

Fees are charged only when the vault's NAV exceeds its all-time high-water markThe highest NAV ever reached. Fees are only charged on new profits above this level. The fee is minted as new vault shares to a FeeSplitter contract, which distributes them between the trader and the platform.

Only performance fees on real, new profits.

• Locked-down trading wallet: The Guard restricts the trader's Smart Account to Polymarket contracts and vault returns only. No funds can be diverted.

• Pending silo isolation: Depositor funds awaiting settlement are segregated. The trader cannot access them.

• 7-day cancel safeguard: If no settlement occurs for 7 days, depositors can cancel and recover their funds automatically.

• 72h whitelist timelock: New trading contracts require 72h notice before activation, giving depositors time to exit.

• 48h role timelock: Curator and oracle changes are announced 48h in advance.

• Emergency pause: The admin can pause the vault and return strategy funds. Pending deposits are recoverable directly by depositors.

Each vault also deploys a FeeSplitter and a PolyStratGuard. Addresses are unique per vault and visible on the vault detail page.