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How Tilt Protocol Works

Tilt Protocol connects three participants in a permissionless, on-chain marketplace for investment strategies.

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The Three Roles

Fund Manager

Creates and manages a fund. Sets the strategy (asset allocation and weights). Earns curator fees.

Investor

Deposits into funds. Earns returns based on the fund’s performance. Withdraws anytime.

Protocol

Provides infrastructure: vaults, rebalancing, price feeds, fee accounting. Earns protocol fees.

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End-to-End Flow

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1. Fund Creation

A fund manager creates a new vault through the Tilt app or directly via smart contracts:
  • Choose a name and ticker symbol (e.g., “AI Momentum Fund” / tiltAIMF)
  • Select target assets from 100+ available tokens (stocks, ETFs, crypto)
  • Set target weights in basis points (e.g., NVDA 30%, AAPL 20%, TSLA 15%, idle cash 35%)
  • Configure curator fee share
  • Deposit seed capital (minimum required to initialize the vault)
The protocol deploys an ERC-4626 vault, registers it on-chain, and it’s immediately discoverable by investors.

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2. Investor Deposits

Investors browse available strategies on tiltprotocol.com, review track records and holdings, and deposit tiltUSDC into any vault:
  • Deposit any amount (no minimums beyond dust)
  • Receive vault shares proportional to current NAV
  • Entry fee deducted (default 0.30%)
  • Funds are held as unallocated deposits until the next allocation cycle

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3. Capital Allocation

Unallocated deposits are deployed into the fund’s target portfolio:
  • The vault calculates buy orders based on target weights
  • RebalanceEngine executes trades through TokenRouter
  • Trades execute at oracle prices with slippage protection
  • Multiple assets purchased in a single batch transaction

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4. Strategy Execution

The fund manager updates the strategy over time:
  • Propose new target weights (subject to time-lock for investor protection)
  • Trigger rebalancing to align holdings with new targets
  • The protocol automatically sells over-weight assets and buys under-weight assets

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5. Investor Withdrawal

Investors can withdraw at any time — withdrawals are never paused:
  • Burn vault shares
  • The vault auto-liquidates held tokens to tiltUSDC
  • Exit fee deducted (default 0.50%)
  • Base asset returned to investor

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6. Fee Collection

Fees accrue continuously and are enforced by smart contracts:
  • Management fees accrue via share dilution (annualized)
  • Performance fees accrue above a high-water mark
  • Fee revenue splits between the protocol treasury and the curator