FAQ

Single Asset Vaults

You said there are no withdrawal limits, so why can’t I access my full deposit right away?

When utilization is very high (over 85% of funds are being actively used), withdrawals might be temporarily limited. To help keep withdrawals flexible, Kai Finance maintains a 15% buffer. During these high-usage periods, we increase interest rates, which encourages new deposits or prompts borrowers to repay, quickly restoring available funds.

Why do I see a slightly smaller amount on withdrawal?

If you notice a difference in the dollar amount shown in the UI after a deposit or withdrawal, it’s likely due to minor differences in price estimation sources. Transaction values always use the actual values.

Is the performance fee already included in the APY?

Yes, the APY you see is what you get. The performance fee is already deducted. This ensures that the displayed APY reflects your actual yield after fees, providing full transparency.

Why are SAV interest rates different from LP interest rates?

SAV interest rates differ from LP rates because the SAV APY consists of two components: the interest rates paid by borrowers and Sui Foundation liquidity incentives.

Why did I receive less APY than displayed?

The APY shown represents the current rate, which fluctuates based on market conditions. If you tracked a lower return (for example, 17% when 20% was displayed), it's because the rate varied during your deposit period. The displayed APY is always the current rate, not a historical average.

Liquidity Provider Vaults

Is up to 11x leverage really safe?

Kai Finance employs multiple levels of security to ensure leveraged positions are safe to use:

• Collateral and Margin Requirements: Each position is backed by strict collateral and margin level checks. Leveraged positions are only allowed when they meet or exceed predefined safety levels.

• Predictable Margin Function: Our system’s margin level behaves predictably within chosen price intervals, ensuring that positions remain secure as long as prices stay within these ranges.

• Deleveraging Mechanism: If a position approaches unsafe levels, our deleveraging feature automatically reduces the position’s size to maintain stability without triggering a liquidation.

• Safe Liquidation Protocol: In cases where liquidation is necessary, our process aims to recover debt fully and fairly. Liquidators are incentivized to maintain healthy positions, reducing risks for everyone involved.

• Oracle Price Protection: With real-time price data from the Pyth Network, Kai Finance protects against price manipulation, preventing forced liquidations due to sudden or artificial price shifts.

For the full technical breakdown, refer to our Whitepaper, where you can explore the math and safety protocols behind our leverage system in detail.

How can I tell if my leveraged LP position is profitable?

Profitability occurs when trading fees in the liquidity pool exceed your borrowing costs. A positive APR indicates that your position is generating profit. Currently, however, the PnL and APR metrics are sensitive to fee fluctuations and may sometimes show negative values. For a more accurate check, take note of your initial deposit amounts and compare them to the position’s Equity. If your Equity minus initial deposits is positive, then your position is in profit.

Since trading fees are collected periodically, waiting a few hours after opening the position can give a clearer view of profitability as fees accumulate.

Are rewards auto compounded? Why is there a manual claim option for pending rewards?

Yes, rewards are auto compounded every two hours. If you do nothing, your rewards will continue to compound automatically. Manual claiming is just an additional feature.

Previously, there were cases where closing a position left some unclaimed rewards if the auto-compound had not triggered. To fix this, we now auto-claim rewards, ensuring that when you close, you receive everything owed to you.

However, you now have more flexibility:

• You can manually compound at any time if you prefer.

• If you want to claim rewards without compounding them, you can do that too.

• You can even auto-convert claimed fees and rewards into a specific token of your choice.