# FAQ Frequently asked questions about Tesseract's Dedicated Client Vaults. For Earn Direct / Earn API questions, see [Earn Direct & Earn API → FAQ](/earn-direct-and-earn-api/faq.md). ### Product & structure **What exactly am I buying?** A MiCA-authorised discretionary portfolio management mandate operated by **Tesseract Investment Oy**, executed through per-client on-chain vaults. It is not software, not a fund, and not a wrapper — it is regulated asset management. Tesseract Investment Oy manages each vault individually under its MiCA CASP authorisation. **Why isn't this just a wrapper around DeFi?** Key structural differences: (1) each client gets their own dedicated vault contract — genuinely separate on-chain, not just accounting separation; (2) non-transferable share tokens avoid collective-investment-scheme and securities classification; (3) Tesseract Investment Oy holds a MiCA CASP authorisation covering portfolio management — most competitors do not. The moat is regulatory and structural, not just a product feature. **How are DCVs genuinely segregated?** Each client's assets sit in their own standalone smart contract at all times. Rebalancing and management happen at the individual vault level — assets never leave the vault to enter a shared pool. This is genuine segregation at the asset level. **What is the minimum deposit for a vault?** Approximately $50,000 USDC (or equivalent in WETH / WBTC). Current per-asset minimums are readable on-chain from each deployer — see [Contract Methods](/dedicated-client-vaults/reference/contract-methods.md). **What assets are supported?** USDC, WETH, and WBTC on Ethereum mainnet. See [Contract Addresses](/dedicated-client-vaults/reference/contract-addresses.md) for deployed vault-deployer addresses per asset. **What yields can I expect?** Indicative gross yields are approximately 5–10% for stablecoins (USDC), 4–5% for WETH, and 2–4% for WBTC. These are indicative and subject to market conditions. Past performance is not indicative of future results. **What about fees?** 0.25% management fee on AUM and 30% performance fee on vault profits. No deposit or withdrawal fees. Fees are levied at the vault level and programmatically split. Partner revenue share under the Introducer / Distribution Agreement is agreed during partnership setup. See [Fees & Commercial Model](/dedicated-client-vaults/fees-and-commercial-model.md). **What strategies are available?** Current strategy options are visible in the [Tesseract app](https://app.tesseract.fi). Strategy selection is made at vault creation — see [Strategy Assignment](/dedicated-client-vaults/integration-guide/scenario-a/strategy-assignment.md). **Will my clients know Tesseract exists?** By default, the Tesseract brand is visible because clients interact via [app.tesseract.fi](https://app.tesseract.fi). For partners integrating DCVs into their own product, the direct smart-contract integration path lets your UI drive the full flow without the Tesseract app being involved — see [Integration Guide](/dedicated-client-vaults/integration-guide.md). Brand surface during onboarding depends on whether you embed the Compliance app (coming soon). ### Integration **What does the first 30 days of integration look like?** For a partnership (Scenario B): legal agreement and due diligence, KYB on your organization, credential provisioning, reporting integration, and acceptance testing. For direct client use (Scenario A): complete KYC / KYB, get whitelisted, deploy and test. See [Choose Your Scenario](/dedicated-client-vaults/integration-guide/choose-your-scenario.md). **What does my end client actually do?** Complete KYC / KYB, wait for wallet whitelisting, deploy a vault with an initial deposit, pick a strategy, and then track performance. See [Vault Lifecycle](/dedicated-client-vaults/vault-lifecycle.md). **How do withdrawals work?** Amounts covered by available liquidity withdraw instantly in a single transaction. Larger amounts use a three-step scheduled flow that spans up to \~24 hours. See [Instant Withdrawals](/dedicated-client-vaults/integration-guide/scenario-a/instant-withdrawals.md) and [Scheduled Withdrawals](/dedicated-client-vaults/integration-guide/scenario-a/scheduled-withdrawals.md). **What happens during market stress?** In calm markets withdrawals process quickly. During market stress, DeFi pool utilization can spike and temporarily slow scheduled-withdrawal processing while positions are unwound. Automated risk management proactively maintains liquidity, but instant withdrawals cannot be guaranteed in all market conditions. ### Compliance & legal **Is this product specifically approved by FIN-FSA?** Tesseract Investment Oy's MiCA CASP authorisation covers discretionary portfolio management of crypto assets. DCVs are structured as a permitted activity under that authorisation. DCVs are not regulated financial instruments and are not covered by investor compensation schemes. **Who are the underlying DeFi counterparties?** Tesseract provides transparency at the protocol level — only pre-approved, whitelisted DeFi protocols may be used. DeFi lending protocols are permissionless by design, meaning borrowers are pseudonymous wallet addresses rather than KYC'd entities. This is a consideration for regulated distributors with strict counterparty-transparency requirements. **Who owns KYC / compliance responsibility?** Depends on integration shape. Under Scenario A, the client is a direct Tesseract client and completes Tesseract KYC. Under Scenario B, responsibility is agreed in the partnership — Tesseract runs full KYC, the partner runs KYC under reliance, or a hybrid. See [Scenario B](/dedicated-client-vaults/integration-guide/scenario-b.md). **Can Tesseract move client funds without consent?** The standard deposit / withdraw interface is locked to the whitelisted client wallet. Tesseract Investment Oy executes the agreed discretionary mandate (rebalancing, risk management), with multisig governance and compliance oversight ensuring operations remain within mandate. ### Risk & accountability **The underlying risk is still DeFi risk — why should my board care about the structure?** The DCV structure changes three things: (1) **legal exposure** — designed to sit outside AIFMD and securities characterisation, with a non-custodial architecture; (2) **operational outcomes** — per-client segregation means one client's problem doesn't cascade; (3) **compliance coverage** — a MiCA-authorised portfolio management mandate. It does not eliminate underlying DeFi risk (smart contract, liquidity, oracle). The value is making DeFi yield distributable within a regulated framework. **When something goes wrong, who is accountable?** Tesseract Investment Oy is accountable as the regulated portfolio manager executing the discretionary mandate. The client retains ownership of their vault via the non-transferable share token. Custody-provider responsibilities (where applicable) follow the custody terms. Risk allocation is defined in the partnership agreement. **What happens in the first 60 minutes after an exploit?** Tesseract operates 24/7 automated risk management with auto-deleveraging when risk thresholds are breached, and an emergency compliance freeze for rapid response. The incident response process — named responders, partner notification, and SLAs — is defined in the partnership agreement. **What can my risk team verify independently?** On-chain: your auditor can independently verify vault balances, ownership tokens, and contract state on Ethereum mainnet using any block explorer. The non-transferable ERC‑4626 share token serves as cryptographic proof of ownership that requires no cooperation from Tesseract to verify. **Can the strategy change without partner approval?** Strategy changes within the agreed mandate are managed by Tesseract's portfolio management team as part of the discretionary service. Material changes to the strategy framework are governed by the change-control process defined in the partnership agreement. --- # 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.tesseract.fi/dedicated-client-vaults/faq.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.