# Vaults

Wasabi vaults use the [ERC-4626](https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/) tokenized vault standard. ERC-4626 is a standard that optimizes and unifies the technical parameters of yield-bearing vaults. 

To deposit into Wasabi LP Pools, the LP deposits tokens into the vault to buy vault shares. Deposited tokens are used to provide liquidatable loans to traders. Once a position is closed or liquidated, the vault collects the interest, increasing the price per vault share. A loss will be recorded in the unlikely event of a late liquidation, decreasing the share price.

By selling their shares back to the pool, LPs can claim the interest earned and the original deposit amount.

<br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.wasabi.xyz/perps-lite-paper/vaults.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.