> For the complete documentation index, see [llms.txt](https://picks.gitbook.io/picks/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://picks.gitbook.io/picks/core-concepts/picks-vault.md).

# Picks Vault

#### What Is the Picks Vault

The Picks Vault is the protocol’s **liquidity layer for reward settlement**.

It allows users to provide digital asset liquidity that backs payouts across the Picks ecosystem. Funds deposited into the Vault are used exclusively to support settlement of winning lineups.

The Vault reflects platform activity.\
It does not generate artificial yield.

Participation introduces variable outcomes.\
There are no fixed returns, no guaranteed yields, and no profit assurances.

***

#### How the Picks Vault Works

When assets are deposited into the Picks Vault:

* liquidity is pooled into a shared settlement reserve
* winning lineup payouts are funded directly from this pool
* Vault balances fluctuate based on aggregate platform outcomes

Vault performance is influenced by:

* total user participation volume
* distribution of winning and losing lineups
* applied multipliers
* total reward obligations across the system

Balances can increase or decrease over time.\
Withdrawable amounts are not fixed.

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#### Scope of Exposure

Vault participants are exposed **only** to settlement performance.

They are **not** exposed to:

* Picks operational costs
* development expenses
* corporate liabilities
* business overhead

The Vault is isolated to reward settlement mechanics.

***

#### Variable Outcome Disclosure

The Picks Vault is a **risk-bearing liquidity mechanism**.

Outcomes vary based on system activity:

* gains occur when aggregate inflows exceed payouts
* losses occur when payouts exceed inflows

Principal is not protected.

There are no:

* fixed yields
* guaranteed returns
* capital protection mechanisms

Participation should be viewed as providing liquidity to a system, not as a savings or yield product.

Only deposit amounts you are comfortable placing at risk.

***

#### Transparency and Tracking

Vault balances are tracked transparently and updated in real time.

Users can monitor:

* deposited amount
* current Vault balance
* historical performance
* available withdrawal amount

All balances reflect live system outcomes derived from settlement activity.

As the protocol evolves, Vault mechanics will continue moving deeper onchain, with expanded verification, reporting, and transparency tooling.

***

#### Participation Notes

* Vault participation is optional
* using Picks does not require providing liquidity
* Vault exposure is independent of individual lineups
* liquidity is provided to settlement mechanics only

Vault rules and mechanics may evolve through future protocol upgrades.

Participation implies acceptance of variability.