FAQ

1. What is the Mammoth Algorithmic Vault designed to do?

The Mammoth Algorithmic Vault is a quantitative yield vault deployed on the BSC network. It aims to generate relatively stable returns through automated quantitative execution strategies without reliance on directional market predictions. Users deposit assets into the vault, after which all trading, rebalancing, and risk management processes are executed automatically by the system.

2. Where are the funds custodied when the vault operates on BSC?

User assets are transferred into the vault via on-chain smart contracts. Execution is jointly carried out by the smart contract system and the quantitative execution engine. The project team does not conduct manual intervention, and all core operational parameters are constrained by predefined risk-control rules.

3. Is the 6% annualized return guaranteed?

No. The 6% figure represents a target annualized range (Target APY). Actual returns vary dynamically depending on the availability and density of exploitable market opportunities. Returns may exceed the target during favorable market conditions and may decline when such opportunities are limited.

4. How are returns calculated, and when does accrual begin?

• T+1 accrual: Returns begin accruing at 00:00 UTC on the day following the deposit.

• No accrual during redemption: Returns do not accrue on the day a redemption request is submitted or during the redemption settlement period. All return calculations are based on on-chain data, and cumulative performance remains observable at all times.

5. Are returns distributed continuously or settled at maturity?

The flexible-access vault adopts a continuous compounding model, whereby returns are reflected in the net asset value of vault shares rather than distributed as separate token payouts. Fixed-term vaults release both principal and accumulated returns for withdrawal upon maturity.

6. Is redemption available at any time?

Yes, subject to the following options:

• Instant redemption: Assets are credited within 24 hours and are subject to a 0.5% liquidity compensation fee.

• Standard redemption: Assets are credited after a seven-business-day settlement period, with no redemption fee. Users may select the redemption option according to their liquidity preferences.

7. Why is a 0.5% fee applied to instant redemption?

Instant redemption requires the system to pre-release liquidity, which introduces execution friction to ongoing strategies. The fee serves to compensate the vault for liquidity and execution costs and to protect the interests of long-term participants.

8. Is early redemption supported for fixed-term vaults?

No. Fixed-term vaults exchange liquidity lock-up for priority strategy allocation and enhanced yield premiums and therefore do not support early redemption.

9. Is there a risk of liquidation or forced liquidation?

The strategy enforces strict limits on leverage and margin usage:

• Net Leverage Ratio (NLR) ≤ 6%

• Gross Leverage Ratio (GLR) ≤ 2x

• Maintenance Margin Ratio (MM%) ≤ 30% The system maintains adequate safety buffers with the objective of preventing forced liquidation events arising from extreme market volatility.

10. What is the maximum potential loss?

The strategy enforces a maximum drawdown threshold (MDD) of ≤ 15%. When drawdowns approach this limit, the system automatically reduces risk exposure, lowers execution intensity, and may enter a defensive operating mode.

11. Can the Cygnus team modify the rules at its discretion?

No. Core risk-control parameters are hard constraints of the strategy. Any modification must be implemented through smart contracts or publicly disclosed mechanisms to ensure transparency and auditability.