> For the complete documentation index, see [llms.txt](https://docs.hunt.town/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hunt.town/lptoken/lp-vaults.md).

# LP Vaults & Shares

An **LP vault** is the contract that turns a Uniswap v4 liquidity position into a transferable ERC-20.

<figure><img src="https://2486355854-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4NxrAAvYUdbFb8acggEf%2Fuploads%2Fgit-blob-3b6934c8e93f5502ae88e9fea0f2b10d0712b2db%2Flptoken-share.jpg?alt=media" alt="An lpTOKEN share card"><figcaption><p>An lpTOKEN share card</p></figcaption></figure>

## One vault, one pool, one position

Each vault is pinned to **exactly one pool**. Its currency pair and fee tier are fixed at deployment and can never be changed afterwards.

Inside that pool the vault owns **one position**, whose price range is set once when the vault is bootstrapped and never changes.

The vault contract **is** the ERC-20 contract **and** the position owner, so an lpTOKEN share is a direct pro-rata claim on the vault itself.

## What a share claims

A share's claim is computed live from onchain state: its pro-rata part of the position's principal, pending position fees, pending launch-fee NAV and idle vault balances, in each of the pair's two currencies.

## Mint

A mint deposits **both sides at the vault's current ratio** and issues shares in proportion.

## Redeem

A redeem burns shares and pays out **in kind**: a proportional slice of the position's liquidity plus a proportional share of idle balances, in both currencies. There is no lockup and no admin approval; redemption is always available.

## Compound

Fees earned by the position sit as idle balances until someone pairs them back into liquidity. Compounding does that, and it is:

* **Permissionless.** Anyone can trigger it; there is no privileged keeper.
* **Swapless.** It only pairs balances that already match; it never trades one side for the other, so compounding cannot move the market.

## What nobody can do

The vaults are deliberately rigid:

* **Not upgradeable.** There is no proxy and no patch path.
* **No pause, no admin withdrawal.** No privileged role can move, freeze, or seize vault assets.
* The owner of lpTOKEN.fun's factory contract can only curate **new** pools and set terms for **future** launches. Existing vaults and positions are untouchable.

A bug cannot be fixed in place. See [Risks](/lptoken/risks.md).