# Vault types

The core of **Diffuse Prime** is a set of **ERC-4626** vaults. Each vault is based on a specific asset called **base asset** and offers one or more yield strategies tied to that asset.

For a given base asset, multiple vaults may exist with different risk levels. Private (whitelisted) vaults can also be created at a lender’s request. A vault’s risk level is defined by the yield strategies it offers.

All vaults sharing the same base asset are presented to lenders through a risk profile interface, which helps to manage exposure across vaults of varying risk levels.

## Vault types

Vaults are grouped by their **strategies and risk level**:

* **Stablecoin vaults** – typically low- to mid-risk, designed for stable yields;
* **Cross-chain vaults** – built for high-liquidity, multi-chain strategies (e.g., Monad, Hyperliquid).
* **Specialty vaults** – isolated strategies for higher-risk or experimental tokens.

Each vault has its own **parameters**, including:

* Yield strategies
* Accepted collateral types (e.g., USDC, PT-lvlUSD, PT-eUSDe)
* Maximum LTV
* Maximum strategy duration (borrower loan period)
* Borrow rate (fixed)
* APY

## Vault risk profile

Curators define risk level for all public vaults, helping both lenders and borrowers compare available options and expected APYs.

Lenders also have access to a personal **risk profile interface** to manage distribution of their deposits across different vaults. This interface is also ERC-4626 compatible.