> For the complete documentation index, see [llms.txt](https://collectivefi.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://collectivefi.gitbook.io/docs/revenue-streams/vault.md).

# Vault

## Overview

The vault is the first of three key revenue components in Collective Fiance. Its long-term goal and objectives are to slowly and steadily maximize returns while mitigating risk. Like the [**Treasury**](/docs/revenue-streams/treasury.md) and [**Portfolio**](/docs/revenue-streams/portfolio.md), the Vault is a multi-level yield-earning asset. However, it functions in a very unique capacity. The Vault will hold a portfolio of asset-backed tokenized [**commodity**](/docs/extras/glossary.md) representations such as gold, silver, and diamonds, which will then be used for liquidity provision. This means these assets can then be freely traded and staked to earn yield. Well-guided participants of the project who choose to stake our [NFTs](/docs/ecosystem/nfts.md) will be entitled to a fractionalized share of the Vault’s earnings.

Through a combination of [**C-Tokens**](/docs/ecosystem/c-tokens.md) and stablecoins, liquidity (i.e. Vault-owned liquidity) will be created for trading to commence, providing an opportunity for the Collective Finance Vault to earn direct rewards.

### Distribution

\* 20% of net proceeds will be used to reinvest and increase the Vault’s positions before being distributed as follows:

* 25% for the [**Angel NFTs**](/docs/ecosystem/nfts.md)&#x20;
* 25% for the [**CGLD NFTs**](/docs/ecosystem/nfts.md)
* 50% will go to the [**Treasury**](/docs/revenue-streams/treasury.md)

The objective here will be to continuously grow the vault holdings and [**C-Token**](/docs/ecosystem/c-tokens.md) liquidity while providing yield and rewards, which will eventually be returned to protocol participants.
