Vectis Finance

Summary

Ketju does not approve Vectis Finance under its class rule for off-chain credit sold as a stablecoin: the vaults hold USDC in accounts at exchanges and custodians that a holder cannot inspect, and the return depends on funding rates. Vectis runs vaults that take USDC and trade the gap between perpetual futures and spot prices, and between funding rates, across exchanges such as Binance and Hyperliquid. DefiLlama’s yield feed lists two vaults on 2026-10-16: UltraX Arb V2 on Solana ($2.7 million, 7.4%) and on Ethereum ($1.8 million, 13.7%). An earlier Vectis vault lost money when attackers exploited the Drift exchange. The class rule covers delta-neutral basis trades sold as dollar products, so Ketju made no further finding about Vectis beyond these facts.

Review triggers
• Vectis publishes venue balances and positions with third-party verification sufficient to read the exposure on-chain

Ketju checks this memo every night and opens a review if its venues or files show a warning or a cited document changes. The first confirmation is due 2027-01-16.

Research

How it works

The vault holds long and short positions in the same asset on different venues, so price moves should cancel and the vault keeps the funding and price gaps. Vectis says it spreads capital across Hyperliquid, Binance, and, on the Ethereum vault, OKX, with more than 90% in the Binance and Hyperliquid pair. The positions use margin, so the vault must keep free collateral at each venue and move cash between them when margin gets thin. The docs name the risks: funding rates that change fast, poor fills in a volatile market, exchange failure, and the work of running several venues at once. The Ethereum vault page quotes the Solana vault’s history as about 13% a year with a drawdown of about 0.2%; that is Vectis’s own figure.

Losses and incidents

The earlier UltraX vault lost money when attackers exploited the Drift perpetuals exchange; Vectis says the exploit affected about 25% of the positions in that vault. Vectis then rebuilt the strategy as V2, dropped Drift, and refunded some fees to affected users until 31 May 2026. Custody now splits between Ceffu for Binance and Cobo for Hyperliquid and other venues. A 3-of-5 multisig with an 8-hour timelock can upgrade the vault contracts. The Solana vault runs on Voltr’s program and the Ethereum vault on Accountable’s vault service. Ketju already does not approve Accountable under the same class rule. Vectis charges 2% a year plus 20% of profit. DefiLlama lists no audit for Vectis. We read no contract and no custody agreement.

Withdrawals

Redemption takes 24 hours from the request, and the docs say the holder forfeits profit earned in that window. The vault must first close positions at the exchanges and move cash back, which a fast market or an exchange halt can slow. The redemption fee is 0.1% on Solana and none on Ethereum. The docs describe no way for a holder to withdraw from an exchange account directly, so every withdrawal depends on Vectis’s operations and its custodians.

Class rule

The class rule for off-chain credit sold as a stablecoin covers Vectis. The return pays for holding trades and cash at counterparties that a token holder cannot inspect or recover from alone, and Vectis sells the product as a stablecoin yield. Ketju will review Vectis again only if Vectis publishes venue balances and positions that a third party verifies, so a holder can read the exposure from the chain.

Sources

Each claim above comes from one of these sources. Where Ketju could not verify a number, the memo states that.

• Vectis Finance · primary · accessed 2026-10-16
  Supports: delta-neutral strategy claim, Drift, Hyperliquid, Backpack venues, Cobo custody claim
• Vectis docs: What is Vectis Finance · primary · accessed 2026-10-16
  Supports: delta-neutral focus, performance fee model
• Vectis docs: UltraX Arb Vault V2 (SOL) · primary · accessed 2026-10-16
  Supports: Drift exploit and 25% of positions, venue allocation, Ceffu and Cobo custody, 3-of-5 multisig and 8-hour timelock, fee refund, risks
• Vectis docs: UltraX Arb Vault V2 (ETH) · primary · accessed 2026-10-16
  Supports: Accountable vault service, OKX venue, custody, fees, risks
• Vectis docs: UltraX Arbitrage (deprecated) · primary · accessed 2026-10-16
  Supports: earlier vault background, episodic funding yield
• Vectis docs: Risks · primary · accessed 2026-10-16
  Supports: hedging risk, operational risk, liquidity risk
• Vectis docs: Terms and fees · primary · accessed 2026-10-16
  Supports: 20% performance fee, 2% management fee, 24-hour redemption, profit forfeited in window
• DefiLlama yield adapter: Vectis Finance · secondary · accessed 2026-10-16
  Supports: Voltr program, share price method, daily NAV update
• DefiLlama: Vectis Finance protocol data · secondary · accessed 2026-10-16
  Supports: TVL by chain, no audits recorded
• DefiLlama: yield pools feed · secondary · accessed 2026-10-16
  Supports: two UltraX Arb V2 pools, rates

The asset and the chain

This memo covers the protocol. A position also holds an asset and settles on a chain. Whichever of the three holds the most power over the position decides who can freeze it. These tables describe control and do not judge quality.