Profit Framework

Proportional Unlocking: Singularity Finance does not lock the underlying vault assets, allowing vault managers to maximise profit generation using the full Total Value Locked (TVL). Instead, Singularity Finance locks only a percentage of the shares representing the profits made. The blue line on our charts represents the total value in the vault, rising when profits are generated and remaining flat during market corrections when profits are negligible. The red line indicates the liquid portion of the vault. Singularity Finance only locks a percentage of the shares representing profit made.

• The blue line represents the total value in the vault. The blue line goes up when profit is being made. The blue line is flat when profit is negligible during market corrections.

• The red line is the liquid part of the vault.

Deferred Proportional Profit Realisation: Our profit framework accelerates the unlocking of profits as TVL grows. When TVL growth slows or stagnates, the system continues to release previously locked profits, ensuring consistent growth in share value.

Sustainable, stable profit emission: This dynamic structure ensures that the system remains sustainable across varying market conditions, encouraging long-term participation while mitigating the risks of stagnation or volatility. Harvest “Sandwich Attack” Protection: A sandwich attack occurs when an attacker front-runs and back-runs a transaction. In vaults, this typically involves depositing just before a harvest transaction to increase the percentage of profit allocated to them, followed by an immediate withdrawal after the harvest. Since 100% of the profit is locked by profit harvest transactions, no value can be extracted by sandwich attacks in the same block.

Incentivises Long-term participants, deters Mercenary Behavior: Mercenary farming refers to users who deposit funds to maximise short-term yields, quickly withdrawing their funds after collecting rewards and moving to the next high-yield opportunity. These mercenary farmers forfeit a portion of their rewards, which are then redistributed proportionally to the remaining participants.

Per-asset configurable watermark: A watermark serves as a benchmark level that must be surpassed before performance fees are charged. This feature ensures that fees apply only when real profits are achieved, preventing users from paying fees on recoveries after losses during volatile market conditions. The watermark feature is configurable per asset, allowing for more frequent updates for highly volatile assets. It guarantees that fees are charged only when the asset exceeds its previous watermark value.