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Auto refund if fundraising target wasn't reached
When you create a vault, you can enable or disable the "Auto refund" option.
Enabling this function allows Vault smart-contract to make automatic refunds to depositors in case the fundraising target has not been reached within the duration of the fundraising phase.
All LP tokens minted during the fundraising phase will be automatically burned and the assets from the Vault balance will be distributed pro rata.
The auto-refund function is reasonable for cases where the fund's ability to operate depends on reaching the fundraising target. For example, for funds that need to raise enough tokens to participate in a private sale.
At the same time, this function may be less appropriate for the funds, which specialize in trading strategies execution. For such funds, the fundraising target is the maximum amount of tokens for which the trading strategy is designed, and if this maximum is not reached, the fund can continue its operation.
Last modified 8mo ago