# Operating the Vault ### Deploying a Withdrawal Validator Every vault requires a withdrawal validator which defines permissible withdrawals. In initial stages, we recommend using the Permissive Validator contract which allows any withdrawal at any time. In the future, withdrawals may be restricted to coincide with treasury shortfalls. See [Withdrawal Validator](/v1-archive/concepts/withdrawal-validator.md). ### Creating the vault In order to create a vault, we must first decide the following on-chain details: * Pair of assets to be used, currently ETH and USDC is recommended (in future versions, more than 2 assets will be supported) * Name and symbol for the vault token (note that vault tokens cannot be used as fungible liquidity positions) * Description of the vault * A notice period for finalization * Initial weights (the vault strategist should be consulted for an appropriate set of initial Balancer weights) * Management fee (set to 0 for V1 vaults) * A withdrawal validator contract (see above) We will also advise on: * The appropriate Balancer factory contract to use * The appropriate Balancer merkle orchard address The following off-chain details should be agreed * An [Objective Function](/v1-archive/concepts/objective-function.md) ### Making an initial deposit In the user interface, initial deposits are not distinguished in any way from regular deposits, however, initial deposits work differently in the smart contracts, requiring a positive amount of each asset in the Balancer pool to be provided in conformance with Balancer weight restrictions. ### Making a deposit When making a regular deposit, any amount of each of [Vault Assets](/v1-archive/concepts/vault-assets.md) can be provided, however, deposits proportional to existing holdings work better. See [Balancer Weights](/v1-archive/concepts/balancer-weights.md) for a longer description but in short, deposits "out of proportion" affect reserve ratios and in turn spot prices, which need to be corrected. Our recommendation when making a deposit is the following: * First pause trading * Then make a deposit, aiming to match the proportions of assets in the vault, where possible * Then wait until market conditions and inter-asset prices are stable and re-enable trading while aiming to match pool spot price as close as possible to market spot price (this can be done by controlling the weights) ### Making a partial withdrawal Similar logic to deposits applies. While the risk of front running is smaller, we still recommend disabling vault trading. ### Making a full withdrawal In some cases a full withdrawal of all vault assets may be required. In this situation, the vault needs to be finalized before the assets can be withdrawn. The reason is that Balancer does not support a full withdrawal of pool assets and this requires Balancer pool termination. Note that the Aera vault cannot be restarted after finalization and a new vault will need to be deployed. ### Making an emergency pause If the vault is not behaving as expected, at any point the owner or managed can disable trading. Note that the Guardian has no power to enable trading (because enabling trading could lead to arbitrage and requires price opinion). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.aera.finance/v1-archive/guides/treasuries/operating-the-vault.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.