# Glossary & FAQ

***

## Glossary

| Term                  | Definition                                                                                                       |
| --------------------- | ---------------------------------------------------------------------------------------------------------------- |
| **svBTC**             | Vault token received when depositing cbBTC. Represents your share of the vault and appreciates as yield accrues. |
| **cbBTC**             | Coinbase Wrapped Bitcoin — the deposit asset for Sova vaults. 1:1 backed by Bitcoin.                             |
| **Vault**             | ERC-4626 smart contract that accepts deposits, issues svBTC, and tracks yield via exchange rate.                 |
| **Exchange Rate**     | Ratio of svBTC to cbBTC. Increases over time as settlement fees accrue.                                          |
| **Settlement Fee**    | 0.5% fee captured when solvers use vault liquidity for cross-chain swaps.                                        |
| **Solver**            | Entity that fulfills cross-chain swap intents using vault liquidity.                                             |
| **Redemption Period** | 30-day waiting period for withdrawals.                                                                           |
| **Reporter**          | Smart contract that posts valuation updates on-chain.                                                            |
| **Conduit**           | Smart contract that handles fund transfers into and out of the protocol.                                         |

***

## Frequently Asked Questions

### Deposits

**What's the minimum deposit?**

$500 USD equivalent in cbBTC.

**How do I get cbBTC?**

* Purchase BTC on Coinbase and withdraw as cbBTC to Base
* Use [Sova Swap](https://app.sova.io/swap) to convert any token to cbBTC
* Swap on Base DEXs like Aerodrome

**When do I start earning yield?**

Immediately after your deposit confirms. Your svBTC begins appreciating as soon as it's minted.

***

### Yield

**How do I earn yield?**

Yield accrues automatically as solvers use vault liquidity to settle cross-chain swaps. The 0.5% settlement fee flows to the vault, increasing the svBTC:cbBTC exchange rate.

**Do I need to claim rewards?**

No. Yield is reflected in the exchange rate — no claiming required.

**What affects my yield?**

| Factor                | Impact                                       |
| --------------------- | -------------------------------------------- |
| **Swap Volume**       | Higher volume = more settlement fees         |
| **Network Activity**  | More cross-chain demand = better utilization |
| **Vault Size**        | Larger vaults can serve more settlements     |
| **Market Conditions** | Volatility often increases swap activity     |

**Is the yield sustainable?**

Yes. Unlike token emissions, Sova yield comes from real transaction fees. Yield scales with protocol usage.

***

### Withdrawals

**How long does withdrawal take?**

All withdrawals require a **30-day redemption period**.

| Phase      | Duration  |
| ---------- | --------- |
| Request    | Immediate |
| Processing | 30 days   |
| Claim      | Immediate |

**Can I cancel a withdrawal?**

Yes. Cancel anytime before the 30-day period completes. No penalties.

**What if I need liquidity sooner?**

svBTC is an ERC-4626 token. You may be able to trade it on secondary markets, though liquidity is not guaranteed.

***

### Fees

**What are the fees?**

| Fee                 | Rate                  |
| ------------------- | --------------------- |
| **Management Fee**  | 0%                    |
| **Performance Fee** | 10% (on profits only) |
| **Deposit Fee**     | 0%                    |
| **Withdrawal Fee**  | 0%                    |

***

### Technical

**Is this custodial?**

No. Sova is non-custodial. You retain ownership of your svBTC tokens. The underlying cbBTC is held in the vault smart contract.

**What chain is this on?**

Base Mainnet (Chain ID: 8453).

**Can I use svBTC in DeFi?**

Yes. svBTC is ERC-4626 compliant and can integrate with lending markets, structured products, and portfolio dashboards.

***

### Security

**Is the vault audited?**

Yes. See the [Security](https://github.com/SovaNetwork/sovaprime-ts/blob/main/docs/vaults/technical-resources/security.md) page for audit reports.

**Where can I verify transactions?**

All vault operations are visible on [BaseScan](https://basescan.org).


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