> For the complete documentation index, see [llms.txt](https://prodigyfi.gitbook.io/structured-yields/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://prodigyfi.gitbook.io/structured-yields/protocol-and-product/how-it-works.md).

# How It Works

A vault lets you commit to buy or sell an asset at a price you choose, on a set date. You earn a defined yield while you wait. Every vault runs the same way.

1. A creator opens the vault, sets the parameters, and deposits the collateral.
2. Subscribers deposit to join. Your yield is defined at subscription. It holds whatever the outcome.
3. The vault runs to expiry. Funds stay in the vault's own contract for the full term. No one borrows against your deposit or moves it elsewhere.
4. It settles on-chain. At expiry the contract reads the asset's price from two oracles, Pyth Network and Chainlink, and resolves one of two outcomes.

If the target price is reached, the swap executes. You receive the other asset at your target price, plus your yield. If it is not reached, there is no swap. You get your original deposit back, plus your yield. The defined yield is yours in both cases. It is income for taking the other side of a price move.

<figure><img src="https://1498879445-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0xUM1AtBZof4xC0ubVWO%2Fuploads%2FMaYsE8axIKy4bY3c3Tky%2FGITBOOK%202026-01.png?alt=media&amp;token=f273f3df-e349-44e9-adf9-b2d590a796f9" alt=""><figcaption></figcaption></figure>

***

## Buy Low and Sell High

Prodigy.Fi has two vault types. Both are built around a target price you choose, called the linked price, and a fixed expiry.

#### Buy Low

Earn a defined yield while you wait to buy ETH or BTC below today's price. You deposit USDC and set the price you'd buy at. If the asset falls to your price by expiry, you buy at that price and keep the yield. If it doesn't, you keep your USDC.

Example. Deposit $10,000 USDC, linked price $4,250, 109.39% APY, expiry 23 Aug 2025. The APY is high because you are taking real exposure. At or below $4,250, you buy ETH at $4,250, which is 2.35294 ETH, plus a defined yield of 0.0144 ETH. Above $4,250 there is no swap. You get your 10,000 USDC back, plus a defined yield of 61.19 USDC.

<figure><img src="https://1498879445-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0xUM1AtBZof4xC0ubVWO%2Fuploads%2FrrCUS4Loq1IdK218KWX1%2FGITBOOK%202026-02.png?alt=media&amp;token=15c6fc3c-252a-4404-9f88-5cea70c1f35f" alt=""><figcaption></figcaption></figure>

#### Sell High

Sell High is the mirror image. You already hold the asset and want to sell it above today's price. Deposit ETH or BTC, set your sell price, and earn the defined yield while you wait. Reach the price by expiry and you sell. Fall short and you keep the asset.

Example. Deposit 1 ETH, linked price $4,350, 120.37% APY, expiry 23 Aug 2025. At or above $4,350, you sell at $4,350, which is 4,350 USDC, plus a defined yield of 16.14 USDC. Below $4,350, you keep your 1 ETH, plus a defined yield of 0.00371 ETH.

<figure><img src="https://1498879445-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0xUM1AtBZof4xC0ubVWO%2Fuploads%2FSoro8nhAGeposFEtt8t9%2FGITBOOK%202026-03.png?alt=media&amp;token=76f696c5-5f47-4c20-856d-1b77392aa52a" alt=""><figcaption></figcaption></figure>

When a swap happens, the yield is an absolute amount defined at subscription. It does not move with the market price at expiry.

*The examples above are historical illustrations, not current rates.*

#### Run together: The Wheel

Buy Low and Sell High are the two halves of the wheel, a classic options-income loop. Get converted into ETH on a Buy Low, then sell that ETH on a Sell High, and repeat. You name your price and collect a defined yield at each step, with no options account, desk, or order book. Each leg stands on its own. You keep the yield whatever the outcome, and you are never obliged to run the next one.

***

## Vault Timing and States

Settlement is read from external oracles, Pyth Network and Chainlink. Prodigy.Fi runs on Ethereum, Base, and Berachain.

Timing (UTC). Vaults expire at 08:00 UTC on the expiry date. Settlement uses the first valid oracle price within one minute after 08:00. Subscriptions close at 06:00 UTC, two hours before expiry. Withdrawals open at 10:00 UTC, once settlement completes.

<figure><img src="https://1498879445-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0xUM1AtBZof4xC0ubVWO%2Fuploads%2FMaYsE8axIKy4bY3c3Tky%2FGITBOOK%202026-01.png?alt=media&amp;token=f273f3df-e349-44e9-adf9-b2d590a796f9" alt=""><figcaption></figcaption></figure>

| State                | Meaning                                                                   |
| -------------------- | ------------------------------------------------------------------------- |
| Active               | Subscription period open; not yet at expiry.                              |
| Expired & in process | Settlement underway, comparing the linked price against the oracle price. |
| Withdraw             | Settlement complete; funds ready to withdraw.                             |
| Settled              | All funds withdrawn; the vault is closed.                                 |

Subscribers pay no platform fee. You cover network gas to deposit and withdraw, nothing else. Creators pay a fee on the yield they offer (see For creators & builders).