Minting mechanics (when vault closes)

Vault Tokens are minted at the moment a vault successfully closes (i.e., reaches its minimum funding threshold within the subscription period). The minting process follows these steps:

Investor deposits USDC into the vault during the funding period

Smart contract records the deposit amount and investor's verified wallet address

Upon vault close, the total raise is confirmed and capital allocation finalised

Vault Tokens are minted proportionally to each investor's contribution (net of the 1% platform fee)

Tokens are transferred to investor wallets and recorded on-chain

Example: An investor deposits 100,000USDC. After the 1% fee (1,000 USDC), they receive 396 Vault Tokens representing their pro-rata share of the vault's assets.

At vault close, a portion of the raise (typically ~$2M in a $12M vault) is paired with an equivalent amount of MST Vault Tokens and seeded into the permissioned AMM liquidity pool, providing baseline secondary market depth from day one.