> For the complete documentation index, see [llms.txt](https://lion-travelers.gitbook.io/lion-travelers/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lion-travelers.gitbook.io/lion-travelers/vault-nft/how-it-works.md).

# How it works

Your Vault is like a **digital safe where to store your cryptos** for a pre-determined time while **obtaining a monthly return** based on the amount you deposited and on your Vault’s parameters.

Each Vault is set to operate with only one chosen cryptocurrency type. Both the deposits and the paid-out return will be handled in that specific preferred cryptocurrency.

Upon depositing any sum in your Vault, you will receive a receipt in US dollars as per the conversion value at the time of your deposit.

Your deposit is now locked and you can **withdraw it every 6 months**. When you withdraw, you will receive the amount of cryptos correspondent to the new market value based on the original USD value at the time of the original deposit.

> E.g., Alice deposits 1 BTC in a BTC Vault while BTC market value is $44,000, hence Alice receives a receipt of $44,000 deposited value.
>
> After 6 months Alice withdraws all her funds. Upon withdrawal, the BTC is worth $40,000. Therefore, Alice receives 1.1BTC.

Depending on your Vault’s achieved parameters (see point 5.3.1 APR), you receive a monthly return. The return is calculated as a percentage on your deposited value (considered in USD and written on your deposited value receipt) and is paid out in crypto according to the new market conversion value USD/your crypto.

> E.g., Alice deposited 1 BTC in a BTC Vault while BTC market value was $44,000, hence Alice received a receipt of $44,000 deposited value.
>
> After 1 month Alice receives 5% of her deposited value in BTC. At the time of the paid compensation, BTC is worth $40,000. Therefore, Alice receives a monthly return of 0,055 BTC.

When you own a Vault, you earn an extra 0,5% on your friends' deposited sums in your Vault.

> E.g., Alice deposited 1 BTC in a BTC Vault while BTC market value was $44,000. While Alice deposited her funds, her friends and family also deposited in Alice’s Vault a total of 10 BTC.
>
> After 1 month, BTC value has not changed and Alice:
>
> * her friends and family, receive 4,2% of their deposited value in BTC (5% total - 0,5% Alice fees - 0,3% administrative fee
> * Alice receives 0,05 BTC as 0,5% extra benefit from her friends and family deposit. Alice receives a total of 0,1 BTC between the return on her own deposited sum and the extra benefit on her friends and family deposited sums.

You can obtain a Vault by **minting it or by buying it** in the marketplace. 

All Vaults can be sold or exchanged via any NFT marketplace.