Epochs

Epochs System

The epoch system provides orderly batch processing of vault operations. Each epoch represents a discrete management period where deposits and redemptions are processed together.

Epoch Timeline

Epoch N-2: Performance realized, redemptions claimable
Epoch N-1: Deposits processed, redemptions queued
Epoch N:   Current epoch, accepting deposits/redemptions

State Transitions

When roll_epoch is called:

Epoch Counter

• Increments by 1

• Triggers state updates

Deposit Processing

• epoch_deposits withdrawn by admin

• Added to managed assets

• Reset to 0 for new epoch

Redemption Processing

• prev_epoch_redemptions become claimable

• epoch_redemptions move to prev_epoch_redemptions

• New redemptions start at 0

Performance Application

• Applied to epoch N-2 positions

• Updates managed assets

• Affects exchange rate

Exchange Rate Stability

The exchange rate remains constant during an epoch. This ensures:

• Fair treatment of all users

• Predictable deposit amounts

• Known redemption values

Exchange rate only updates when:

• Performance is reported

• Epoch rolls over

Redemption Delay

The 2-epoch delay for redemptions provides:

• Time for strategy unwinding

• Batch processing efficiency

• Liquidity management

Timeline for redemption:

1. Epoch N: User redeems

2. Epoch N+1: Admin processes

3. Epoch N+2: User claims

Admin Operations

Admins can perform operations during an epoch:

• process_deposits: Withdraw accumulated deposits

• process_redemptions: Deposit underlying for claims

• roll_epoch: Advance to next epoch

These operations can happen multiple times per epoch or batched at epoch end.