FAQ
Frequently asked questions about RIP Protocol and rHYPURR vault.
General Questions
What is RIP Protocol?
RIP Protocol is a decentralized finance platform offering institutional-grade vault strategies on HyperEVM. Our vaults provide yield-generating opportunities backed by real assets with transparent NAV calculations.
What is rHYPURR?
rHYPURR is an actively managed NFT index token providing diversified exposure to the Hypurr NFT ecosystem. Similar to an ETF, it holds a portfolio of Hypurr NFTs managed by professional vault managers.
What blockchain does RIP Protocol run on?
RIP Protocol operates on HyperEVM, a high-performance EVM-compatible blockchain.
Are the smart contracts audited?
All smart contracts undergo thorough security audits by reputable third-party auditors. Audit reports are published on our website as they become available.
Deposits & Redemptions
How do I deposit into rHYPURR?
Connect your wallet to the RIP app
Navigate to the rHYPURR vault page
Click "Deposit" and enter the amount of WHYPE
Approve the transaction (first time only)
Submit your deposit request
Your shares will be minted after the next NAV update (~1-2 hours)
Why can't I withdraw immediately after depositing?
RIP vaults use an asynchronous processing system to ensure fair pricing and prevent front-running. Your deposit is processed at the next NAV update, typically within 1-2 hours.
What fees are charged?
Deposit Fee: 0.3% (check current rates in vault specifications)
Redemption Fee: 0.5% (check current rates in vault specifications)
Fees support protocol operations and discourage rapid entry/exit strategies.
Can I cancel a deposit or redemption request?
No, once submitted, requests cannot be cancelled. They will be processed at the next available opportunity.
What happens if the vault doesn't have enough liquidity for my redemption?
In rare cases, redemptions may be partially fulfilled. Your request stays in the queue and is completed as more liquidity becomes available from new deposits or vault manager transfers.
NAV & Pricing
What is NAV?
Net Asset Value (NAV) is the per-share value of the vault, calculated by dividing total vault assets by total shares outstanding. NAV determines pricing for deposits and redemptions.
How often is NAV updated?
NAV is calculated and updated approximately every hour by an automated keeper bot.
How are NFTs valued for NAV calculation?
NFTs are valued using a weighted average floor price methodology that emphasizes recent sales data (past 30 days), applies linear decay weighting, and includes outlier detection to prevent manipulation.
What is confidence scoring?
Confidence scores indicate the reliability of NAV valuations based on data recency and market activity. Higher confidence means more recent and liquid price data.
Can NAV go down?
Yes, NAV fluctuates based on the value of underlying assets. If NFT floor prices decline, NAV per share will decrease accordingly.
Vault Strategy
What assets back rHYPURR?
rHYPURR is backed by:
A portfolio of Hypurr NFTs held by the vault manager
WHYPE token reserves for redemption liquidity
How does the vault manager make money?
The vault seeks value appreciation through:
Overall growth of the Hypurr NFT ecosystem
Strategic "trading up" (selling lower-value NFTs to buy higher-value ones)
Portfolio optimization based on proprietary valuation models
Airdrops and other benefits from holding NFTs
Who controls the vault manager wallet?
The vault manager is an MPC (Multi-Party Computation) wallet managed by Fordefi, requiring consensus from multiple parties for all transactions. No single entity has unilateral control.
Can the vault manager steal my funds?
No. The vault manager can only execute authorized operations (buying/selling NFTs, managing liquidity). User shares are held in the vault contract, and redemptions are processed according to NAV. The MPC wallet structure and smart contract safeguards prevent unauthorized fund movement.
Technical Questions
What token standard is used for vault shares?
rHYPURR shares are ERC-20 tokens following the ERC-4626 vault standard, making them compatible with DeFi protocols and wallets.
Can I use my vault shares in other DeFi protocols?
Yes, vault shares are standard ERC-20 tokens that can theoretically be used in other protocols. However, we recommend holding them to benefit from the vault strategy.
What happens if the keeper bot goes down?
If the keeper fails to submit NAV updates within the staleness threshold, the vault automatically pauses deposits and redemptions to protect users. Operations resume once NAV updates are restored.
Are there deposit limits?
Yes, the vault has maximum deposit caps to ensure the strategy can effectively deploy capital. Check current limits on the vault page.
What is an epoch?
An epoch is a counter incremented with each NAV update. Requests are tagged with epochs to ensure they're processed at the correct historical NAV price.
Risks
What are the main risks?
NFT Market Volatility: NFT prices can fluctuate significantly
Liquidity Risk: Redemptions may be delayed in extreme conditions
Smart Contract Risk: Potential for undiscovered vulnerabilities
Keeper Dependency: Relies on keeper bot for NAV calculations
Strategy Risk: Trading strategy may not always be profitable
See the Security page for detailed risk information.
Is my investment insured?
No. DeFi protocols are not insured like traditional financial institutions. Only invest funds you can afford to lose.
What happens if I lose money?
Investment value can go down as well as up. You are responsible for your investment decisions and any losses incurred.
Support
How do I get help?
Review documentation at docs.rip.xyz
Join our Discord community (link coming soon)
Email [email protected]
Where can I see my vault position?
Your vault shares appear in your wallet as ERC-20 tokens. The RIP app dashboard shows detailed position information including NAV value and performance.
How do I report a bug?
For security issues, email [email protected]. For other bugs, please open an issue on our GitHub repository or contact support.
Still Have Questions?
If your question isn't answered here, please reach out to our support team or community channels.
Last updated