> ## Documentation Index
> Fetch the complete documentation index at: https://docs.arcx.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# vToken

> The base vault share. Deposit USDC, earn yield, and accrue credits for supported reward programs.

## What Is a vToken

A vToken is a vault share. Each vault pairs a market maker with one or more perp DEXes. You deposit USDC, receive vToken shares, and get two forms of exposure:

1. **Yield** — the market maker borrows your capital and returns value through either a fixed rate or a performance-fee split
2. **Credits** — the strategy's activity participates in supported reward programs, and your holding time accrues credits that generate CreditTokens

One vToken per vault. Different vaults have different market makers, exchanges, and rates.

<Info>
  vToken is the simplest way to use ArcX. You earn yield and accrue credits without trading or managing anything. Just deposit and hold.
</Info>

***

## Deposit

Deposit USDC into a vault. You receive vToken shares at the current <Tooltip tip="Net Asset Value. Per-share USDC value of the vault.">NAV</Tooltip>:

$\text{shares} = \frac{\text{deposit amount}}{\text{NAV}}$

First deposit into an empty vault mints shares 1:1 with USDC. After that, shares are priced by NAV.

***

## Yield

Yield comes from the market maker borrowing vault capital and returning value through either a fixed rate or a performance-fee split. NAV tracks that value over time.

NAV only reflects hard assets (USDC value). It does not price in points — points are tracked separately through credits.

***

## Credits and CreditTokens

Your vToken accrues **credits** while you hold it — the longer you hold and the more you hold, the bigger your share of CreditTokens for each period. Credits are tracked automatically on-chain.

Each period, CreditTokens are minted based on credit share and the period weight reported through the oracle. Market makers can share rewards received from the underlying protocol with CreditToken holders.

<Info>
  Hold earlier, earn more. Earlier credit periods are locked in and cannot be diluted by later depositors.
</Info>

<img src="https://mintcdn.com/karnot/k5xmQRK6X37hFYPr/images/vtoken-weekly-distribution.png?fit=max&auto=format&n=k5xmQRK6X37hFYPr&q=85&s=665b06da500c16a82f83ff7222a91f1d" alt="Weekly point distribution for vToken holders" width="4325" height="1869" data-path="images/vtoken-weekly-distribution.png" />

If you buy vTokens on secondary or receive them via transfer, your credit counter starts from zero. The previous holder keeps their accumulated credits.

See [Credit Mathematics](/deep-dives/credit-mathematics) for the formula.

***

## Withdrawal

Withdrawals depend on two timing constraints: **lock-in** and **unwinding**.

<Steps>
  <Step title="Lock-in">
    Operators usually need deposits to stay on the exchange for a minimum period so they can put the capital to work. Because of that, each vToken has a global lock-in window.

    If the lock-in is 3 days, then the withdrawable amount is total supply minus deposits made in the last 3 days. During this lock-in period, your vTokens are **not** burned, and you continue earning yield and credits.
  </Step>

  <Step title="Unwinding">
    Once your position is withdrawable, the operator still needs time to unwind exchange positions and return capital to the vault contract. Your vTokens are burned during this unwinding period.
  </Step>

  <Step title="Withdraw">
    After unwinding completes, the USDC is available to withdraw from the vault.
  </Step>
</Steps>

You can find the current lock-in time and unwinding time on the market page.