Managing a Syndicate
For Syndicate Managers - allocation, intents, fees, and operations
TL;DR: Syndicate Managers allocate LP capital across risk pools, post fixed-rate quotes on the orderbook, and manage capacity inside the live 20-point / leverage-ladder risk system.
This page is for Syndicate Managers - the operators who manage capital allocation on behalf of depositors. If you're an LP looking to understand the vault model from the depositor side, see Syndicates.
Manager Responsibilities
| Responsibility | Description |
|---|---|
| Pool Selection | Choose which risk pools to back based on risk/reward |
| Capital Allocation | Distribute LP capital across selected pools |
| Quote Management | Post sell-side intents on the RFQ OrderBook at competitive rates |
| Rebalancing | Adjust allocations as pools change, rates shift, or capacity fills |
| Redemption Liquidity | Keep enough unlocked / deallocatable capital available for LP exits |
Allocation Strategy
Pool Selection Criteria
When choosing pools for your syndicate:
- Risk rating - Higher-rated pools (AAA/AA) offer less premium but lower claim risk
- Premium rates - Compare the rate policyholders are paying vs your required return
- Utilisation - Pools with high demand but low capacity offer pricing power
- Correlation - Avoid concentrating on pools that share mutex groups
- Term profile - Shorter terms (30d) give faster capital recycling
Leverage Management
Capital efficiency vs safety. At launch, the configured max leverage is expected to start at 3x. The live ceiling can be lower if your largest single-pool pledge grows too large, and mutex groups block correlated allocations entirely.
As the manager, you control the syndicate's live leverage profile by choosing:
- how much total point budget to spend
- how concentrated the largest single pool becomes
- whether pools are genuinely independent or blocked by mutex rules
Fixed-Rate Market Making
Managers can post sell-side intents on the RFQ OrderBook - essentially committed quotes at specific rates.
How it works:
- Post intent - Commit a specific amount at a specific rate (e.g., "$50K at 600bps for 90 days")
- Buyer matches - A policyholder accepts your quote
- Policy minted - Capital is locked immediately, premium is collected
- Capital returned - At policy expiry (or claim), capital is released
Why? Market making lets managers set their own prices and guarantee execution. Instead of waiting for policies to be sold via the pool's AMM rate, you directly offer competitive quotes.
Performance Fees
Managers can configure a performance fee that is charged when harvested yield is claimed into the vault.
- Fees are capped at 20%
- The fee is transferred to the configured fee recipient
- Net harvested yield remains in the vault for LPs
Capacity Management
| Control | Description |
|---|---|
| Deposit caps | Set maximum TVL for the syndicate |
| Minimum deposit duration | Enforce a base lock duration for new deposits |
| Idle yield threshold | Decide when idle capital should be routed into yield |
| Allocation discipline | Keep the book inside the point budget, leverage ladder, and mutex rules |