> For the complete documentation index, see [llms.txt](https://docs.troves.fi/p/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.troves.fi/p/what-are-strategies-vaults.md).

# What are Strategies/Vaults?

### Vault Overview <a href="#vault-overview" id="vault-overview"></a>

A Vault is a pooled investment product that automates yield strategies on behalf of depositors. Users deposit tokens into the Vault, and the underlying strategy actively manages these funds to generate returns in a secure and efficient manner. The Vault abstracts away the complexities of yield farming, trading, rebalancing, and risk management, making it simple for depositors to earn optimized yield.

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### Key Features <a href="#key-features" id="key-features"></a>

* **Professionally Managed**\
  The Vault follows automated strategies designed and maintained by protocol contributors. This reduces the need for users to manage complex on-chain positions themselves.
* **Optimized for Yield**\
  The strategy reallocates funds across opportunities, adjusting exposure to maximize yield while minimizing idle funds.
* **Delta Neutral Structures (where applicable)**\
  Strategies may use delta-neutral methods to reduce exposure to market volatility, ensuring yield is driven more by strategy execution than by price speculation.
* **Liquidation Risk Management**\
  Leverage-based strategies include automated health monitoring and rebalancing to mitigate liquidation risk. Safety parameters are built into the system to protect user deposits.
* **Composability**\
  The Vault plugs into underlying DeFi protocols (like lending markets, DEXs, or staking pools) to source yield seamlessly.
* **Capital Efficiency**\
  Strategies may mix lending, borrowing, farming, and hedging techniques to extract the maximum efficiency from deposited assets.

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### User Benefits <a href="#user-benefits" id="user-benefits"></a>

* Deposit once, earn yield automatically.
* No need to manage multiple DeFi positions manually.
* Risk and exposure managed by coded safeguards.
* Transparent performance tracking on-chain.

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### Additional Notes <a href="#additional-notes" id="additional-notes"></a>

Exact parameters, risk profiles, and mechanics of each strategy are detailed on its dedicated **Strategy Page** within the app: [app.troves.fi](https://app.troves.fi/).