Question 1

What is Soil?

Accepted Answer

Soil manages on-chain vaults and aims to connect digital assets such as USDC, RLUSD, or XRP to institutional-grade strategies, paying yield in the same asset deposited by the user. Users do not directly purchase a specific underlying loan; instead, they select a vault, which then allocates capital according to its rules to assets such as Treasury strategies, money market funds, or institutional credit. Therefore, the key to understanding Soil is not only the annualized figure displayed on the page, but also the selected vault's asset type, liquidity arrangements, and term. Different vaults allocate capital differently, and their yield sources and conditions for withdrawing funds also differ.

Question 2

How should the process of participating in a Soil vault be understood?

Accepted Answer

The basic path for participating in Soil is to first select a vault, then deposit an asset accepted by that vault; the vault allocates capital according to its own strategy, and any yield generated is paid in the deposited asset under the product rules. When selecting a vault, users should first compare whether it emphasizes liquidity or credit exposure, whether it has a notice period or lock-up period, and the applicable terms listed on the page. Depositing an asset does not mean directly owning the companies, debt claims, or other underlying assets allocated by the vault. Users hold an on-chain position corresponding to the rules of the selected vault; whether funds can be redeemed, when they can be redeemed, and how yield is settled are subject to that vault's terms at the time.

Question 3

What is the difference between liquidity vaults and credit vaults?

Accepted Answer

Liquidity vaults aim to preserve shorter-term access to funds while providing yield, with allocations that may include Treasury strategies, money market funds, and screened institutional lending opportunities. They are intended for participants who prioritize flexibility of funds. Credit vaults, by contrast, have institutional private credit as their primary risk exposure, such as real estate, corporate lending, or trade finance strategies. Such products generally exchange more defined terms or notice arrangements for different yield targets; they are not a “higher tier” of the same vault, but a product choice with different liquidity and credit-risk exposure.

Question 4

Where does yield from Soil vaults come from?

Accepted Answer

Yield from Soil vaults comes from the institutional credit, Treasury strategies, and other real-world financial activities to which they are actually allocated, rather than relying solely on token incentives. For example, in credit allocations, interest paid by borrowers or related credit strategies is a potential source of yield; the vault then settles with participants under its product rules. Yield displayed as an annualized indicator does not constitute a fixed commitment. Asset allocation, market conditions, vault terms, and availability can all affect actual results; the annualized figure shown on the page should be understood together with that vault's specific term, notice period, and conditions.

Question 5

Does participating in an XRPL Vault mean holding the company or its assets?

Accepted Answer

A Vault on XRPL is an on-chain loan made by users to Soil Ltd.; it is not a purchase of equity in Soil Ltd. and does not represent ownership of its underlying assets. A user's rights under this product are subject to the Vault terms, and the lending relationship should not be understood as company ownership. The interest rate for this type of Vault is expressed as a variable annual percentage rate (APR), meaning that the annualized figure may be adjusted based on market conditions and the product methodology. If the product has a notice period or cooldown period, the time between requesting an exit and funds becoming available may also include the corresponding stages.

Question 6

What is the role of the SOIL token and the locking function?

Accepted Answer

SOIL is a protocol token associated with the Soil ecosystem. According to official materials, holders may lock SOIL under the rules to increase the total annualized yield of eligible lending vaults; this function affects the yield terms of applicable vaults rather than automatically converting SOIL into a separate, fixed-yield certificate. Whether this function can be used depends on whether the vault supports it, whether the locking rules remain applicable, and whether the user meets the conditions of that vault. Locking SOIL also does not mean owning Soil company or the underlying assets of a vault.

Question 7

How should yield and liquidity be compared when choosing a Soil product?

Accepted Answer

When comparing Soil products, annualized yield is only one indicator and cannot alone determine whether a product is suitable. Liquidity products emphasize shorter-term availability; credit products allocate capital to private credit strategies with defined terms; and the XRP Vault allows holders to maintain XRP-denominated participation on the XRP Ledger. Therefore, a higher or lower annualized figure on the page cannot be understood separately from asset denomination, vault allocation, notice periods, cooldown periods, and exit conditions. The on-chain transaction costs ultimately paid by users also vary with the network used and transaction complexity.

Question 8

Why do notice periods and cooldown periods affect fund availability?

Accepted Answer

The term, notice period, and cooldown period shown on a vault page each affect when funds can exit. A notice period generally requires an exit request to be submitted first, followed by the specified waiting time; a cooldown period is an additional waiting stage after the preceding condition is met and before funds can complete the relevant operations. Whether these apply and their duration depend on the selected Vault. These arrangements are related to vault allocation: products holding longer-term or private credit assets generally should not be understood as allowing exit at any time on the same terms. Completing the waiting period does not guarantee that other product terms can be disregarded, so the Vault's current rules should still be checked before participating.

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