> For the complete documentation index, see [llms.txt](https://docs.ensemble.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ensemble.io/vaults/vol.md).

# VOL

Review VOL's concentrated leveraged short BTC strategy, configured terms, liquidity, and material risks.

VOL seeks gains when BTC falls and is exposed to losses when it rises. It targets 6x short exposure to BTC alone, so even a modest adverse move can be costly. It can be used as a hedge, but it does not guarantee protection for another portfolio.

{% hint style="warning" %}
Fees and strategy settings can change. Read current contract configuration before transacting. See [Fees and caps](/how-it-works/fees-and-caps.md).
{% endhint %}

## At a glance

The table summarizes the strategy and current fee terms.

| Property                               | Configured value |
| -------------------------------------- | ---------------- |
| Direction                              | Short            |
| Basket                                 | BTC 100%         |
| Target exposure                        | 6x               |
| Collateral                             | USDC             |
| EVM cash buffer                        | 45%              |
| Routine rebalance interval             | 4 hours          |
| Drift threshold                        | 10%              |
| Management / deposit / withdrawal fees | 2% / 0.1% / 0.3% |

Deposit capacity depends on the configured total cap, transaction maxima, account limits, deposit-window usage, vault state and liquidity. Read these controls before signing.

## How the configured strategy works

The vault targets a short BTC perpetual-futures position on HyperCore and aims to keep 45% of its net asset value as USDC on HyperEVM. The larger cash buffer supports operations and withdrawals; it does not turn 6x exposure into a low-risk strategy.

The raw target notional is net asset value times target leverage. The cash-buffer percentage is not multiplied into that target as an extra reduction. Execution costs and safety limits can adjust or constrain the positions actually placed.

## Why results can diverge from the basket

VOL does not promise six times the inverse of BTC's return over a holding period. Six-times target exposure, the 45% cash buffer, funding, fees, fills, urgent maintenance, rebalance timing, and compounding all affect realized performance.

## Fees and execution costs

Fees reduce the value left for you. The annual management rate is 2%, the deposit fee is 0.1%, and the withdrawal fee is 0.3%.

The builder trading fee is 0.1% of contract-observed executed notional. It is separate from HyperCore exchange fees. Funding payments can also increase or reduce the value left for shareholders. Read [Fees and caps](/how-it-works/fees-and-caps.md) for how each charge works.

## Liquidity and redemptions

A displayed share value can exceed the amount you can withdraw now. A normal redemption pays from the vault's spendable USDC on HyperEVM and must pass the current CircuitBreaker limits.

Trading capital may need to return from HyperCore before more USDC is available. Pending maintenance, pauses, and emergency conditions can also block an exit. Read [Liquidity and redemptions](/safety/liquidity-and-redemptions.md).

## Material risks

VOL can lose value very quickly during a BTC rally. Its 6x target and single-asset basket create concentrated risk. Funding costs, execution, withdrawal liquidity, software, and privileged contract changes also affect holders.

## Where the numbers come from

Vault contracts determine accounting and fees; CircuitBreaker determines transaction policy and limits. Read compatible contract configuration and capacity before transacting. See [Fees and caps](/how-it-works/fees-and-caps.md) and [Parameters and limits](/reference/parameters-and-limits.md).

## Next steps

Review the shared risks and current deposit process before transacting. Read [Risks before you deposit](/start-here/risks-before-you-deposit.md) and [Connect and deposit](/use-ensemble/connect-and-deposit.md).

Compare [iVOL](/vaults/ivol.md) for the paired opposite-direction strategy. Each vault has independent settings and returns; the pair does not guarantee inverse performance.