FAQ'S
Let us help answer the most common questionWhat is Sharpe Earn?
Sharpe Earn is a professional investment platform. It allows users to create investment strategies while keeping their funds in their wallets at all times. This is done using “proxy vaults”. Unlike other vaults that follow the ERC4626 standard, Sharpe Earn ensures that each investment position is in a separate sub-account. This prevents any overlap of positions or pooling of assets, eliminating shared economic risk.
How are my funds managed from my wallet?
Your funds are managed directly from your wallet through Sharpe Earn's smart contracts or what we call DeFi Smart Accounts. These Smart Accounts interact with the DeFi protocols you choose. When you use Sharpe Earn, you sign transactions that execute these smart contracts. This allows you to perform actions like leveraging LSTs or investing into an index. Importantly, you never need to send your funds to a third-party address or entrust your funds to anyone else. You maintain full control and ownership of your funds and positions at all times.
Is Sharpe Earn a vault?
No, Sharpe Earn is not a vault. Sharpe Earn is decentralized managed accounts. Unlike platforms that use the ERC4626 standard, Sharpe Earn is entirely self-custodial. This means it provides you with greater control and flexibility over your investment portfolios. Essentially, you can achieve what vaults offer, but with Sharpe Earn, everything stays in your control, ensuring you always have full control over your funds.
How does Sharpe Earn ensure the safety of user funds?
Sharpe Earn does not hold user funds. Users always remain the sole owners of any portfolio they invest in through Sharpe Earn.
Is Sharpe Earn audited?
Yes, Sharpe Earn has undergone audits by independent auditors. More details can be found here. Learn more
How much does it cost to use Sharpe Earn?
Sharpe Earn charges 0.01% of the total value of your transaction as a fee when opening a position. The platform carries 0% management and 0% performance fee.
it is important to keep in mind that leveraging staking does incur swap fees charged by the DEXs and Flashloan fee when opening, closing or modifying a transaction.
Can I open and close a position again to maximize my points?
Sharpe Earn strategies yield returns on buying and holding. It is not advised for the user to open and close transactions frequently.
If you buy and sell within a single day, you incur multiple fees: swap fees charged by the DEX, gas fees charged by the chain, and a 10 bps fee charged by our platform. Users can check their transaction hash to see the fee breakdown. opening and closing a position within a single day is not advisable.
Do Sharpe Points increase with the time holding the position?
No, Sharpe Points do not increase over time. Points are based on notional volume when users open an investment. For example, if you invest a notional volume of $1000 through Sharpe, you will receive 1000 Sharpe Points.