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

# Vaults & custody

> How Totalis holds collateral: non-custodial on-chain Solana vaults, delegated signing, gas sponsorship, and automatic settlement.

Totalis is **non-custodial**. Your funds sit in an on-chain Solana vault that the protocol's program controls — not in a Totalis-held account. You enable trading once by delegating signing permission, and from then on placing, settling, and closing parlays happens without you signing each transaction by hand.

```mermaid theme={null}
%%{init: {'themeVariables': {'edgeLabelBackground': '#1f2020', 'lineColor': '#ffffff'}}}%%
flowchart LR
    UW["User Wallet<br/>(Privy TEE)"]
    MW["Market Maker Wallet<br/>(Privy TEE)"]

    subgraph onchain["Solana on-chain"]
        direction LR
        UV["User Vault PDA<br/>holds USDC"]
        MV["MM Vault PDA<br/>holds USDC"]
        VC["VaultConfig PDA<br/>stores roles + fee_bps (1%)"]
        POS["Position PDA<br/>locks user_stake + mm_collateral<br/>(parlay legs + status)"]
        FV["Fee Vault (cold wallet)<br/>collects protocol revenue"]

        UV -- "lock user_stake" --> POS
        MV -- "lock mm_collateral" --> POS
        VC -. "reads roles + fee_bps" .-> POS
        POS -- "fee (1% of profit, winning side)" --> FV
    end

    subgraph offchain["Off-chain"]
        direction TB
        ORACLE["Off-chain oracle<br/>creates positions<br/>monitors outcomes<br/>settles / cancels"]
        API["Kalshi / Polymarket API<br/>market outcomes"]
        ORACLE -- "polls outcomes" --> API
    end

    UW -- "deposit (USDC)" --> UV
    UV -- "payout (if user wins)" --> UW
    MW -- "deposit (USDC)" --> MV
    MV -- "payout (if MM wins)" --> MW
    ORACLE -- "create_position" --> POS
    ORACLE -- "settle / cancel" --> POS
```

## Your vault

You have one persistent vault, reused across every parlay. It tracks three balances:

| Balance    | Meaning                                            |
| ---------- | -------------------------------------------------- |
| **Gross**  | Total USDC in the vault.                           |
| **Locked** | Collateral committed to your active positions.     |
| **Free**   | `gross − locked` — available to trade or withdraw. |

Read them any time from [`GET /v1/vault`](/api-reference/funds/get-vault). You fund the vault by sending USDC to your wallet (see [Funding](/guides/funding)); placing a parlay moves your stake into the vault and locks it in one atomic step.

## Delegated signing

Your wallet is a Privy embedded wallet whose private key lives inside a **Trusted Execution Environment (TEE)** — it never leaves the enclave, and not even Privy can extract it.

To trade, you grant Totalis permission to sign on your behalf inside that enclave (a one-time consent in the app — see [Enable trading](/guides/funding#enable-trading-first)). This is **semi-custodial**: you explicitly grant the permission and can revoke it at any time. Totalis can sign your trades, but never holds or can move your key.

## Gas is sponsored

Totalis pays the network fees for trading and settlement, so your wallet only ever needs to hold **USDC** — never SOL.

## How a position locks and settles

When you accept a quote, your stake and the maker's collateral lock together in a **single atomic transaction** — there's no window where one side is funded and the other isn't.

Totalis charges two fees: a 1% taker fee on your stake, charged upfront when you place the trade, and a protocol fee taken **on profit only** when funds move between vaults at settlement:

* **You win** — you receive the maker's collateral, minus the fee on your profit.
* **You lose** — your stake transfers to the maker, minus the fee.
* **A leg is voided** (market invalidated) — the position is cancelled, both sides' collateral is released, and no one wins or loses.

The fee rate is fixed onto each position when it's created, so settlement always uses the rate that applied at trade time.

## Capital efficiency for makers

Market makers don't lock the full risk of every position independently. Totalis margins a maker's book as a portfolio: collateral reflects their **incremental worst-case exposure**, so hedged or offsetting positions require less locked capital than the naive sum. This is what lets makers quote deep, competitive odds.

## Why this design

* **Non-custodial** — collateral is locked in on-chain vaults the program controls; Totalis never holds your funds.
* **Verifiable** — every vault, position, and settlement is on the Solana blockchain.
* **Atomic** — position creation is one transaction with no partial-failure states.
* **Low overhead** — one reused vault per participant keeps on-chain costs down.