1. Product parameters#
| Parameter | Configuration |
|---|---|
| Deposit network | Arbitrum One |
| Chain ID | 42161 |
| Deposit asset | Native USDC on Arbitrum |
| Minimum deposit | 50 USDC per vault |
| Architecture | ERC-7540 vaults with proxies and implementations |
| Deposits | Asynchronous: request, processing and share claim |
| Multisig | Safe, formerly Gnosis Safe |
| Entry fee | None |
| Exit fee | None |
| Lock-up period | None |
| Stated redemption period | 1 hour to 5 days, depending on available capital |
No lock-up means that the product does not impose a minimum holding period. Redemptions still require request processing and sufficient liquidity. They are not instantaneous. The stated period depends on operational conditions and is not a guaranteed deadline during exceptional incidents.
Transactions on Arbitrum require ETH for network fees. These costs are separate from protocol fees.
2. Vault architecture#
Separate vaults#
Pallas provides two vaults: Pallas Basis & Funding and Pallas Alpha Factor (AF). Each has a separate proxy address, implementation and curator address.
Shares represent participation in one specific vault. A deposit into one vault does not grant shares in the other. The vaults share some governance and read components, creating common technical dependencies despite their separate contracts.
View the contracts on Arbiscan#
Pallas Basis & Funding
Pallas Alpha Factor (AF)
Each vault has its own implementation in the deployment report dated 17 October 2026. Full addresses are also listed in the contract registry below.
Proxy: the vault's interaction address#
The proxy is the address used to interact with a vault. It holds the vault's state and delegates execution to an implementation. Deposit and redemption calls target the relevant vault proxy.
Deposits must use the application's designated function. Simply transferring USDC to a contract address does not replace a deposit and does not guarantee that shares will be issued.
Implementation: the contract logic#
The implementation contains the code executed on behalf of the proxy, including transaction handling, access controls and accounting rules. Delegated execution runs in the proxy's context.
The deployment report dated 17 October 2026 identifies two separate implementations, one per vault. A proxy architecture allows the logic to be changed where the upgrade mechanism and permissions permit it. Users should therefore consider both the deployed code and the associated governance powers.
VaultReader: reading vault data#
A shared VaultReader is listed as a stateless read component. It facilitates access to vault data. It is neither a deposit address nor a trading account.
3. ERC-7540 and asynchronous settlement#
ERC-7540 extends the ERC-4626 tokenized vault model with asynchronous requests. An operation can be recorded before settlement becomes possible. This supports infrastructure in which some capital is deployed in markets.
The request lifecycle has three stages:
PendingThe request has been recorded and awaits processing.
ClaimableThe request has been processed and can be claimed.
ClaimedThe claim transaction has completed.
Pallas vaults use asynchronous deposits: a deposit request is submitted, processed and made claimable before shares can be claimed. Redemptions also follow the request-and-claim lifecycle described below. ERC-7540 itself does not specify returns, liquidity or processing times. ERC-7540 specification.
4. Depositing and receiving shares#
- Connect a wallet on Arbitrum One. The deposit balance must consist of native USDC on that network.
- Select a vault. Check its address, fees and relevant product information.
- Approve USDC spending. An ERC-20 allowance authorizes the contract to transfer the required deposit amount. Approval alone is not an investment.
- Submit a deposit request. The contract records a pending request. Submitting the request does not immediately deliver vault shares.
- Wait for processing. Once processed, the deposit request becomes claimable under the vault's rules.
- Claim vault shares. Complete the claim step to receive the shares representing participation in the selected vault.
Deposited funds become capital allocated to the selected vault. The amounts held as available liquidity and deployed for execution can change with operational activity and redemption needs.
6. Redemption lifecycle#
An investor submits a redemption request to the relevant vault. Settlement depends on available capital and may require positions to be reduced or collateral to be returned. Once the request has been processed, the claimable amount can be transferred to the beneficiary wallet through the applicable claim flow.
The stated redemption period is 1 hour to 5 days, depending on available liquidity. Pallas charges no exit fee. Applicable management and performance fees remain separate from this absence of an exit fee.
The value displayed when a request is submitted may differ from the final amount. The contract determines when the conversion rate is fixed. A recorded request is not a completed redemption.
7. Capital flows and execution infrastructure#
The capital journey
Two vaults. Separate shares. Asynchronous settlement.
- Allocation
- Capital return
- Control / authorization
Shares represent participation in a vault; they are not collateral sent to markets.
Each curator is a Safe multisig account that receives vault capital and trades on connected exchanges.
Fees are accounted for per vault. The governance delay is separate from the redemption period.
The diagram describes the economic operation of the infrastructure. Each vault allocates capital to its curator, a Safe multisig account that trades on connected exchanges and returns capital to the vault for redemptions. Operational addresses and transfer mechanisms depend on the integrations in use.
Solid arrows represent capital movements: deposits, allocation, capital return and redemptions. Dashed connections represent authorization or control. Shares represent economic participation in a vault; they are not collateral sent to markets.
Capital allocation and trade execution are separate operations. An algorithm can submit an order without a new transfer of funds between addresses for every trade. Similarly, the multisig does not imply that every order requires manual signatures.
8. Implemented venues#
Funding and basis spreads differ from book to book. The Basis & Funding vault watches every venue it trades and assesses expected spread P&L and net funding, after costs.
Live venues are drawn solid; venues being integrated are drawn hollow. Hover or tap a venue to see what Pallas trades there, and use its link to visit the venue directly. More venues, not yet disclosed, will be added as they are integrated.
9. Safe and governance#
Privileged operations#
Pallas uses Safe, formerly Gnosis Safe, for its multisig infrastructure. Transactions subject to multisig approval require an approval threshold among multiple signers.
A Safe's powers depend on the contract roles assigned to it. A multisig does not automatically have authority over every protocol component. Enabled modules and delegations may introduce additional execution paths; their configuration is part of the security perimeter. Safe documentation.
Each vault has a separate curator. The contract registry below identifies these addresses and the administrative and governance accounts. The supplied deployment report does not specify signer counts or approval thresholds.
Timelock governance#
The TimelockController is configured as the vaults' governance and default administrator. Its initial minimum delay is 172,800 seconds, or 48 hours.
An operation governed by the timelock is scheduled by an authorized proposer, waits for the required delay and then becomes executable. Execution is open once a validly scheduled operation is ready. This does not allow the public to propose arbitrary changes.
This delay applies to operations subject to the timelock. It is separate from both investor holding periods and redemption processing times, and does not necessarily apply to every operational action. OpenZeppelin access control reference.
10. Vault fees#
| Vault | Management fee | Performance fee |
|---|---|---|
| Pallas Basis & Funding | 1.5% | 17% |
| Pallas Alpha Factor (AF) | 2% | 20% |
Management fees compensate for capital management. Performance fees apply to performance according to the vault's fee basis and calculation rules. These rates were communicated by Pallas and are reflected in the deployment report. Calculation periods, accrual and collection methods are governed by the applicable detailed fee terms.
High-water mark#
Performance fees use a high-water mark (HWM) mechanism for both vaults. Fees are charged only on new performance above the applicable high-water mark, according to the vault's accounting rules. Following a decline, losses must be recovered up to that reference level before further performance fees apply; the recovery to the high-water mark is not charged again.
The reference level, its update rules, calculation frequency, treatment of management fees and adjustments for deposits and redemptions follow the vault's detailed accounting terms.
There are no entry or exit fees. Network fees, market execution costs and financing costs are separate from protocol fees.
11. Contract registry#
Internal security audits have been conducted. Public audits with third-party firms will be carried out soon.
The following addresses are taken from the Arbitrum One deployment report dated 17 October 2026. Each link opens the address on Arbiscan. These links are not an audit attestation or independent verification of the deployed code.
Deposit asset#
The minimum deposit is 50,000,000 base units, equivalent to 50 USDC with 6 decimals. This is the token address, not a vault address.
Pallas Basis & Funding#
PLS B&FPallas AF#
PLS AF12. Terms and Conditions#
Investor responsibility#
Investors make their own investment decisions and participate in Pallas vaults at their own responsibility and risk. Each investor is responsible for reviewing the documentation and applicable terms, understanding how the vault operates and assessing whether an investment is appropriate for their financial circumstances and ability to bear losses. Invested capital is not guaranteed, and investors may lose part or all of their investment.
No guaranteed returns or maximum drawdown#
Any returns, yields, performance targets or maximum drawdown figures stated in an investment thesis or related material are not guaranteed outcomes. Historical results, backtests, simulations and projections do not guarantee future performance.
A stated maximum drawdown describes the relevant historical or simulated observation, or a stated objective. It is not a contractual loss limit or a guarantee that future losses will remain within that figure. Actual returns may be lower or negative, and future drawdowns may exceed the figures presented.
Deposits, redemptions and fees#
Deposits are asynchronous and require request processing before shares can be claimed. There is no lock-up period. Redemptions remain subject to processing and available capital, with a stated period of 1 hour to 5 days under the conditions described in this documentation.
Management and performance fees apply at the rates specified for each vault. Performance fees are subject to the high-water mark mechanism described above. Pallas charges no entry or exit fees; network and execution costs remain separate.
These provisions do not exclude or limit any rights or obligations that cannot lawfully be excluded or limited under applicable law.