> For the complete documentation index, see [llms.txt](https://ditto-6.gitbook.io/kibble/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ditto-6.gitbook.io/kibble/resources/vault-protocol/vault-functional-guide.md).

# Vault Functional Guide

Every Vault has three functions:

1. `Deposit`
2. `Withdraw`
3. `Rebalance`

### Deposit

Enables Deposits of the Deposit Token to Vaults and returns LP tokens.

### Withdraw

Enables Withdrawals from Vaults in exchange for LP tokens.

### Rebalance

Each Vault owns two liquidity positions in the underlying Uniswap V3 liquidity pool: 

1. `Buy_Limit_Order` - A position set on the buy-side (below the price) of a volatile Crypto\_Token’s current trading price. 
2. `Take_Profit_Order` - A position set on the sell-side (above the price) of a volatile Crypto\_Token’s current trading price.

These positions are recreated every time the vault is being rebalanced. Each position is defined by its Low and High price limits (`Buy_Limit_Order_Low`, `Buy_Limit_Order_High`, `Take_Profit_Order_Low`, `Take_Profit_Order_High`). These limits are determined via Vault rebalancing strategies.

### General Parameters

1. A vault rebalance describes the transaction that moves liquidity from its current concentrated position to a more effective concentrated position based on changing market conditions. 
2. Vault Strength = Total Deposited Vault Liquidity / Market Cap 
3. Rebalances will not occur during periods of high volatility. 
4. requires a minimum Vault Strength of 10% (subject to change per protected asset). This means that if Vault Strength dips below 10%, then the concentrated liquidity will be rebalanced to support a price at which Vault Strength would again be greater than or equal to 10%.
5.  Concentrated liquidity position ranges will not change unless deemed necessary to protect against market uncertainty. 
6. Rebalances will occur manually when trading prices have increased or decreased by one price space or deposited funds are ready to be deployed. 

**The vault is ready to be rebalanced when any of the following conditions are met:**

* Funds waiting to be deployed are more than 5% of the total vault value. (ie. The Deposit\_Percentage is greater than 5%). 
* The `Buy_Limit_Order` includes one price space that is 100% Crypto\_Token (ie. The red bar moves one space to the left). 
* The `Take_Profit_Order` includes a Price Space that is 100% Base\_Token (ie. the red bar moves one space to the right).