Executive Summary
ZENT is the first multi-asset Alpha Vault on-chain. Users stake BTC, ETH, SOL or XRP today (zHYPE vault planned for Phase 3) and access systematic yield from proprietary algorithms that capture premium and discount opportunities across crypto markets. The vault is non-custodial — users retain 100% custody of their assets throughout. All vault trades are on-chain and publicly verifiable.
ZENT is not a hedge fund. There are no minimum investments, no identity verification — fully on-chain — and no 2-and-20 fee structures. The vault uses proprietary algorithms and, optionally, research from the ZENT Research Competition — a Numerai-style network where quants stake ZENT on accuracy and compete to contribute the best market structure analysis.
In addition to the Alpha Vault, ZENT offers a Research Network — market structure analysis across crypto, commodities, equities and forex, published weekly and available to ZENT subscribers. Research is not investment advice. It describes market conditions and observable anomalies — funding rate disparities, basis spreads, forward price deviations — without directional recommendations.
ZENT Token
ZENT token serves three functions: vault access, research subscription payments, and governance participation. ZENT is a utility token. It does not represent equity, does not entitle holders to revenue share, and is not marketed as an investment opportunity.
Vault Access
Anti-sybil staking requirement
Subscriptions
Research tiered access
Governance
Protocol parameter voting
Non-Custodial
Users retain 100% custody via ERC-4626 vault architecture
On-Chain Verified
All trades publicly verifiable on HyperEVM
No Minimums
Accessible to any wallet — no accredited investor requirements
Market Neutral
Strategies capture premium and discount, not direction
The Alpha Vault
2.1 How It Works
Users deposit BTC, SOL, ETH, XRP or HYPE via an ERC-4626 vault contract. The vault contract holds assets in the user's own wallet — the protocol never takes custody. Instead, it executes systematic strategies within a tightly defined mandate, and yield accrues to vault shares. Users can withdraw at any time by redeeming their shares for the underlying asset plus any accrued yield.
Supported Assets
BTC
Wrapped Bitcoin
ETH
Wrapped Ether
SOL
Solana
XRP
Ripple
HYPE
Hyperliquid
Deposit Flow
User approves vault contract → deposits underlying asset → receives vault shares ERC-4626 tokens. Shares represent proportional ownership of vault strategy NAV.
Withdrawal Flow
User submits redemption request → vault shares burned → underlying asset transferred to user wallet. No lock-up periods, no withdrawal fees.
2.2 The Strategy: Systematic Premium Capture
The vault's proprietary algorithms continuously monitor premium and discount conditions across multiple crypto venues. When a threshold is met, the vault executes within its strategy mandate. All strategies are market-neutral — they do not bet on the direction of any asset.
Funding Rate Arbitrage
When perpetuals trade at a premium to spot, the vault sells the perpetual and buys the spot, capturing the funding rate spread. Positions are delta-neutral — the vault holds equal long and short exposure, isolating the carry without directional risk. This premium typically ranges from 0.01% to 0.1% daily, compounding significantly over time.
Basis Trade
When futures or forwards trade at a premium to their estimated fair value, the vault sells the futures contract and buys the underlying spot, capturing the basis spread at expiry. The vault uses proprietary models to estimate fair value based on interest rates, implied volatility, and term structure — not directional forecasts.
Cross-Venue Premium
When the same asset trades at materially different prices on different venues — due to liquidity fragmentation, regulatory differences, or temporary dislocations — the vault buys on the cheaper venue and sells on the more expensive one, capturing the price convergence. Execution algorithms optimize venue selection to minimize slippage and maximize captured spread.
Market Neutrality
All three strategies are designed to be market-neutral. The vault does not hold directional positions — every long position is hedged by a corresponding short. The objective is to capture temporal mispricings between related instruments regardless of whether markets rise or fall. This distinguishes the vault from directional trading strategies.
Methodology Note: The specific threshold parameters, execution algorithms, venue selection logic, and risk management procedures are proprietary and not disclosed in this document. Full transparency is provided for trade logs, vault NAV, and risk metrics — which are recorded on-chain and queryable by any user.
2.3 Non-Custodial Architecture
The vault's non-custodial design is its most critical security property. The protocol never holds user assets. Instead, it operates through a layered architecture that separates asset custody from strategy execution.
Architecture Layers
Layer 1 — Vault Contract (ERC-4626)
The vault contract holds user deposits as tokenized shares. Assets remain in the user's wallet. The contract records share balances and tracks NAV per share. It cannot move assets outside the strategy mandate.
Layer 2 — Strategy Execution
Strategy logic runs via approved keeper bots that read vault state and execute across whitelisted venues only. Execution venues are hardcoded allowlists — the vault cannot interact with arbitrary addresses.
Layer 3 — Governance
Strategy parameters — premium thresholds, maximum position sizes, circuit breakers — are governed by ZENT token holders via multi-sig. Changes require supermajority approval and a timelock period before execution.
User Wallet Sovereignty
Assets never leave the user's wallet. Vault contracts are execution mandates, not custodial accounts.
Venue Allowlists
Strategy contracts can only interact with pre-approved, audited execution venues.
Timelocked Governance
Strategy parameter changes require a governance vote and mandatory timelock before activation.
2.4 Fee Structure
20%
Performance Fee
Only charged on yield generated above the HODL baseline
0%
Management Fee
No annual or monthly management fees
No hidden fees. Deposit, mint, redeem, and withdraw are all free. The 20% performance fee is only charged when the vault generates positive yield above the HODL baseline — if the vault underperforms the underlying asset, no performance fee is charged.
Comparison to Hedge Funds: Traditional hedge funds typically charge 2% management fee + 20% performance fee on all profits — including those that merely track an index. ZENT charges 0% management and a performance fee only on alpha above HODL. All performance data is for illustrative purposes only; no guarantees are made.
The Research Network
3.1 Market Structure Research
The ZENT Research Network publishes weekly market structure analysis across crypto, commodities, equities and forex. Research is available to ZENT subscribers and describes observable market conditions and anomalies — it does not make directional recommendations or price predictions. Past performance does not guarantee future results.
What Research Covers
Funding Rates
Perpetual futures basis rates across exchanges, term structure, and historical spreads — with context on current rate levels versus historical ranges.
Basis Spreads
Futures-spot basis for BTC, ETH, and SOL across different tenors. Identifies periods when basis exceeds or falls below fair value estimates.
Forward Premiums
Implied rates derived from futures curve shape. Cross-exchange comparisons for cross-venue arbitrage opportunities.
Anomaly Alerts
Detected deviations from normal market structure — unusual funding spikes, basis blowouts, or persistent cross-venue dislocations.
Research is NOT investment advice. The Research Network describes what is happening in markets — funding rates are high, basis is wide, forward premium is elevated — without suggesting whether to long or short any asset. Subscribers use this information to understand the conditions that drive vault performance and to form their own views.
3.2 The ZENT Research Competition
The ZENT Research Competition is a Numerai-style market structure research competition. Quants stake ZENT and publish market structure research — funding rates, basis spreads, anomaly detection — and are scored on accuracy against resolved market data. Top performers receive ZENT from ecosystem allocations and are evaluated for integration into the vault's strategy framework.
Stake & Publish
Researchers stake ZENT to publish market structure analysis to the network. The stake is a bond against accuracy — consistent underperformance results in slashing.
Scored on Reality
Research is scored against resolved market data. Did the identified anomaly resolve as described? Was the basis spread captured? Scores are public and on-chain.
ZENT Rewards
Top performers receive ZENT from ecosystem allocations. The best researchers are evaluated for vault strategy integration.
Public Verification
All research submissions, scores, and payouts are recorded on-chain. A permanent, incorruptible track record — no selective reporting, no opaque black box.
The Research Competition serves two purposes: it crowdsources the best market structure analysis from independent quants worldwide, and it creates a transparent, on-chain track record that demonstrates the quality of research available to subscribers — a verifiable proof of the network's analytical capability.
3.3 Cross-Asset Expansion
The Research Network and Alpha Vault are designed for multi-asset expansion. Each phase adds new asset classes, leveraging the same ERC-4626 architecture and market structure framework.
Phase 1 — Crypto (Now)
Live on HyperEVM TestnetAssets: BTC, SOL, ETH, XRP, HYPE
Core vault strategies deployed for major crypto assets. Research network publishing weekly crypto market structure reports.
Phase 2 — Commodities (Q3 2026)
In DevelopmentAssets: Tokenized Gold (XAUT, PAXG), Silver
Vault expansion to tokenized commodities via partners. Basis trade opportunities between on-chain and off-chain commodity markets.
Phase 3 — Equities (Q4 2026)
PlannedAssets: RWA Equity (via Securitize, Ondo)
RWA equity integration enables vault strategies to capture basis between tokenized equities and their off-chain counterparts. Institutional vault tier.
Phase 4 — Forex (2027)
PlannedAssets: Majors via CASP Licensed Partners
Forex integration via CASP-licensed liquidity providers. Carry trade analysis and cross-border basis capture across fiat currency pairs.
ZENT Token
4.1 Token Utility
ZENT is a utility token with three primary functions within the protocol. It is not a security — it does not represent equity, does not entitle holders to a share of protocol revenue, and is not marketed as an investment opportunity.
Vault Access (Anti-Sybil)
Users must stake ZENT to access the Alpha Vault — deposit, redeem, and track performance. Staking creates an anti-sybil mechanism that prevents automated bot activity and aligns long-term holders with protocol health.
Research Subscriptions
ZENT pays for tiered access to the Research Network — from basic weekly reports to real-time anomaly alerts and competition data. Subscriptions are ZENT-denominated operational payments, not investment products.
Governance
ZENT holders vote on vault risk parameters, maximum leverage caps, circuit breaker thresholds, new execution venue approvals, and keeper incentive allocations. Governance is the primary decentralisation mechanism.
4.2 Token Distribution
ZENT has a fixed total supply of 1,000,000,000 tokens. No admin mint key exists — supply is permanent and immutably capped. All allocation is locked in smart contracts and programmatically released on schedule.
| Allocation | % | Tokens | Vesting Schedule |
|---|---|---|---|
| Community & Rewards | 30% | 300M | User incentives, staking rewards, community growth |
| Team & Founders | 20% | 200M | 4-year vesting, 1-year cliff from TGE |
| Investor Sale | 20% | 200M | 2-year vesting, 6-month cliff |
| Treasury | 15% | 150M | Growth, partnerships, emergencies; DAO-governed |
| Liquidity | 10% | 100M | DEX listing & market-making provision |
| Advisors & Consultants | 5% | 50M | 2-year vesting, 6-month cliff |
TGE = Token Generation Event. Team vesting is longer than investor vesting — a deliberate alignment signal. All allocations are in time-locked smart contracts, not externally owned accounts.
4.3 ZENT Is NOT a Security
This point is critical and non-negotiable.
ZENT is a utility token. It provides access to vault services, research subscriptions, and governance rights. It does not represent equity in Zentory Labs or any affiliate. It does not entitle holders to any share of revenue, profit, or assets. Holding ZENT does not create an investment relationship between the holder and the protocol.
Not a Security Because:
- No equity or ownership claim
- No revenue or profit share
- No promise of financial return
- No investment contract relationship
Value Derives From:
- Utility demand for vault access
- Research subscription payments
- Governance participation rights
- Scarcity from buyback and burn
Regulatory Design: ZENT is designed to comply with applicable regulations, including the SEC Howey test in the United States and MiCA regulations in the European Union. The team has obtained legal counsel on token classification and will continue to monitor regulatory developments. This document does not constitute legal advice — users should consult qualified counsel regarding their own jurisdiction.
Roadmap
Phase 1 — Alpha Vault (Now)
April 2026- Alpha Vault live on HyperEVM Testnet (Chain 998)
- ZENT token deployed with staking and governance
- Research Network publishing weekly crypto market structure reports
- Lumibot-driven systematic strategy for BTC, ETH, SOL, XRP (zHYPE vault scheduled for Phase 3)
- First Research Competition participants onboarded
Phase 2 — Mainnet & Commodities
Q3 2026- Alpha Vault on HyperEVM Mainnet
- Tokenized commodity vault integration (gold, silver)
- ZK proof implementation for trade verification
- Research subscriber tier system launched
- Target: TVL growth as protocol matures
Phase 3 — RWA & Institutional
Q4 2026- RWA equity partnerships (Securitize, Ondo)
- Institutional vault tier with transparent on-chain access
- Multi-sig governance upgrade — full DAO transition
- Strategy parameter governance fully on-chain
- Target: scaled TVL with institutional access
Phase 4 — Forex & Multi-Asset
2027- Forex carry trade research via CASP-licensed partners
- Full multi-asset vault — crypto, commodities, equities, forex
- zkML verification for strategy execution
- Competitions expanded to cross-asset market structure
- Target: multi-asset vault scaling
Legal Disclaimer
Important Disclosures
1. ZENT Token Classification
ZENT is a utility token. It is not a security, investment contract, or financial instrument. Purchasing ZENT does not create an investment relationship, equity ownership, or entitlement to any share of revenue, profit, or assets of Zentory Labs, the ZENT Protocol, or any affiliated entity. ZENT is not marketed or sold as an investment opportunity. The value of ZENT, if any, derives entirely from its utility functions within the protocol.
2. The Alpha Vault Involves Algorithmic Trading
The Alpha Vault uses proprietary algorithms to execute systematic trading strategies. These strategies carry inherent risks, including but not limited to:
- Market risk: market conditions may cause strategies to underperform or generate negative returns
- Execution risk: slippage, venue failures, and oracle inaccuracies may impact outcomes
- Model risk: algorithms may behave unexpectedly in unprecedented market conditions
- Smart contract risk: vulnerabilities in vault contracts could result in loss of funds
- Liquidity risk: positions may be difficult to close during market dislocations
Past performance does not guarantee future results. Backtested results, historical returns, and hypothetical scenarios are not indicative of future performance. The vault's strategies may lose value or become entirely worthless.
3. No Investment Advice
Nothing on this website, in this whitepaper, or in any ZENT Research Network publication constitutes financial, investment, legal, tax, or other professional advice. The Research Network describes observable market conditions — funding rates, basis spreads, forward premiums, and anomalies — without making directional recommendations. Readers should form their own independent assessments and consult qualified advisors before making any financial decisions.
4. Non-Custodial Nature and User Responsibility
The ZENT Alpha Vault is non-custodial. Users retain 100% custody of their assets. This means that users are solely responsible for the security of their own wallets, private keys, and recovery phrases. Zentory Labs does not have the ability to access, freeze, or recover user funds. Users who lose their private keys or suffer wallet compromise will lose their assets permanently. Users must independently verify that the vault contracts they interact with are authentic, official deployments.
5. Regulatory Variability
The regulatory status of ZENT tokens, vault shares, and related activities varies by jurisdiction. Some jurisdictions may classify ZENT or vault participation as a regulated activity. Users are solely responsible for understanding and complying with applicable laws in their jurisdiction. The protocol may be modified or restricted in response to regulatory developments. Zentory Labs does not warrant that the protocol is legal in any particular jurisdiction.
6. Research Network Disclosures
Research published through the ZENT Research Network is based on observable market data and is intended for informational purposes only. Research is not investment advice, financial guidance, or a recommendation to buy, sell, or hold any asset. Research competition submissions are the views of independent contributors, not of Zentory Labs. The protocol does not endorse or verify the accuracy of third-party research published through the network.
This whitepaper is provided "as is" without warranty of any kind, express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, or non-infringement. In no event shall Zentory Labs, its founders, employees, or affiliates be liable for any direct, indirect, incidental, special, or consequential damages arising from the use of this document, the ZENT Protocol, or any related services.
This whitepaper is intended for informational purposes only and is subject to change. The protocol described herein is under active development and features described may change prior to full deployment. This document was prepared as of the date indicated and may be updated without notice.
Prospective participants should conduct their own independent due diligence and consult with qualified legal, financial, and tax advisors before making any decisions related to ZENT tokens, vault participation, or research subscriptions.
Disclaimer: This site is for informational purposes only. Nothing herein constitutes an offer or solicitation to buy, sell, or hold any token, security, or investment. ZENT is a utility token — not a security. All crypto investments involve substantial risk, including possible total loss. Not legal or investment advice.
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