Frequently Asked Questions
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General Questions
What is GRID Token?
GRID Token is an investment product that represents ownership in an automated trading system. The system uses sophisticated grid trading strategies on Solana's Orca DEX to generate yield through liquidity provision. When you buy GRID tokens, you're buying a share of the total assets managed by this trading system.
Is this too good to be true? Why are returns so high?
High returns in DeFi come from taking on risks that traditional finance avoids. GRID Token generates returns through:
- • Real trading fees: Earning from actual market activity, not token emissions
- • Capital efficiency: Concentrated liquidity earns 10-100x more than traditional AMMs
- • Volatility capture: Profiting from market volatility through automated rebalancing
- • No middleman: Direct access to DEX trading fees without traditional broker costs
Important: These returns carry real risks including smart contract failures, extreme market conditions, and technical issues. Always invest only what you can afford to lose.
How can I verify this isn't a scam?
GRID Token is designed for maximum transparency and verifiability:
- • Open source code: All smart contracts and trading bot code available on GitHub
- • On-chain verification: Every position, trade, and fee can be verified on Solana explorer
- • Third-party audits: Smart contracts audited by Code4rena and additional security firms
- • Non-custodial: You control your tokens, no central authority can steal funds
- • Real trading: Monitor actual positions on Orca DEX in real-time
Red flags to avoid: Promises of guaranteed returns, anonymous teams, closed-source code, custodial requirements, or pressure to invest quickly.
How is GRID different from other DeFi yield products?
GRID Token combines several unique features:
- • Delta Neutral Strategy: Eliminates directional market risk
- • Dynamic Grid Trading: Adapts to market volatility in real-time
- • Multi-Position System: 4 specialized positions optimize fee capture
- • Fully Automated: No manual intervention required
- • Transparent Pricing: Real-time on-chain NAV calculation
Who is behind GRID Token?
GRID Token is developed by a team of DeFi experts with backgrounds in traditional finance, blockchain development, and quantitative trading. The project is open-source and community-driven, with plans to transition to full DAO governance.
Is GRID Token regulated?
GRID Token operates as a decentralized protocol on the Solana blockchain. Users are responsible for complying with their local regulations. The protocol itself is permissionless and non-custodial - you always maintain control of your tokens.
Investment & Returns
What returns can I expect?
GRID Token targets approximately 0.2% daily yield (73% APY when compounded), but actual returns vary based on:
- • Market volatility (higher volatility = more trading = more fees)
- • Trading volume on Orca DEX
- • Overall market conditions
Important: Past performance does not guarantee future results. Returns are not guaranteed.
How is yield generated?
Yield comes entirely from trading fees earned by providing liquidity:
1. Liquidity Provision: The bot provides liquidity to SOL/USDC trading pairs on Orca
2. Fee Collection: Every trade that goes through our liquidity earns fees (0.01% - 1%)
3. Automatic Reinvestment: All fees are automatically reinvested to compound returns
4. Token Appreciation: As fees accumulate, the NAV per token increases
What is the minimum investment?
The minimum investment is $10 USD equivalent in either SOL or USDC. There is no maximum investment limit. Additional investments can be made at any time with no minimum amount.
Are there any fees?
GRID Token currently has no management or performance fees during the growth phase:
- • No management fees: 0% annual management fee (permanently)
- • No performance fees: 100% of profits go to token holders (current phase)
- • No deposit/withdrawal fees: Only network gas fees
- • Network fees only: ~$0.00025 per transaction on Solana
Future Fee Structure: After reaching $100M AUM, a 10% performance fee on returns above risk-free rate (~5% APY) may be introduced to ensure protocol sustainability. Token holders will vote on any fee changes.
What happens if trading volume on Solana decreases?
GRID Token has multiple strategies to adapt to changing market conditions:
- • Multi-chain expansion: Deploy to Ethereum, Arbitrum, and other high-volume chains
- • Strategy diversification: Add different trading strategies beyond grid trading
- • Volume-based adjustments: Concentrate positions during low volume periods
- • Cross-chain arbitrage: Capture opportunities between different chains
Even if Solana volume decreases 50%, the strategy can maintain profitability by concentrating liquidity in the most active price ranges and expanding to other chains.
How do you make money if there are no fees?
GRID Token follows a growth-first, monetization-later model similar to successful tech companies:
Phase 1: Growth (Current)
Focus entirely on AUM growth and user adoption. No fees to maximize competitiveness.
Phase 2: Sustainability (Future)
Introduce performance fees once we've proven value and reached scale ($100M+ AUM).
Phase 3: Platform (Long-term)
Revenue from multiple products, data services, and institutional offerings.
This model has worked for companies like Uber, Amazon, and many successful fintech startups - prioritize user value first, monetization second.
Technical Questions
What is grid trading?
Grid trading is a strategy that places multiple buy and sell orders at predetermined intervals above and below the current market price. As the price moves up and down, these orders are executed, capturing profits from market volatility. GRID Token enhances this with:
- • Dynamic range adjustment based on volatility
- • Multiple position types for different market conditions
- • Automatic rebalancing when positions move out of range
What does "delta neutral" mean?
Delta neutral means the strategy has no directional exposure to price movements. If SOL goes up or down, the strategy's value remains relatively stable. This is achieved through:
- 1. Balanced liquidity provision: Equal exposure to both assets
- 2. Perpetual futures hedging: Offsetting positions on Drift Protocol
- 3. Continuous rebalancing: Maintaining neutral exposure
This allows GRID to profit from volatility and trading fees regardless of market direction.
How does the multi-position system work?
Sniper Position (40% capital)
Tight range (0.8x volatility) for high-frequency fee capture near current price
Central Position (30% capital)
Medium range (1.2x volatility) for balanced risk/reward
Coverage Position (15% capital)
Wide range (1.5x volatility) for market coverage
Safe Position (5% capital)
Maximum range (2x volatility) for extreme market moves
How often does the system rebalance?
Rebalancing occurs based on market conditions:
- • Volatility trigger: 30% change in 24h volatility
- • Position trigger: When positions approach range boundaries
- • Safety limits: Maximum 6 rebalances per day
- • Minimum interval: 2 hours between rebalances
Risk & Security
What are the main risks?
Key risks include:
Smart Contract Risk: Potential bugs or exploits in the code
Mitigation: Multiple audits, bug bounties, gradual rolloutMarket Risk: Extreme volatility or black swan events
Mitigation: Delta neutral strategy, position limitsTechnical Risk: System downtime or errors
Mitigation: Redundant systems, automatic recoveryLiquidity Risk: Large redemptions may face delays
Mitigation: 5% reserve pool, transparent queue
Has GRID Token been audited?
Yes, GRID Token has undergone multiple security reviews:
- • Smart contract audit by [Audit Firm Name]
- • Trading bot code review by [Security Firm]
- • Ongoing bug bounty program up to $100,000
- • Open-source code for community review
Audit reports are available in the documentation section.
Who controls the funds?
GRID Token is non-custodial:
- • Funds are controlled by smart contracts, not individuals
- • No admin keys or backdoors
- • Trading bot has limited permissions (can only trade, not withdraw)
- • You can redeem your tokens for underlying assets at any time
Redemption & Liquidity
How do I redeem my GRID tokens?
Two redemption methods are available:
1. Direct Redemption
Burn GRID tokens to receive proportional share of underlying assets (SOL/USDC)
2. GRID/USDC Pool (Coming Soon)
Trade GRID tokens directly for USDC on the open market
Is there a lock-up period?
No, there are no lock-up periods. You can redeem your GRID tokens at any time. However:
- • Small redemptions (< 5% of AUM) are instant via reserve pool
- • Large redemptions may take 1-4 hours for position unwinding
- • During high demand, a queue system ensures fair processing
What happens during a bank run?
GRID Token has multiple safeguards against mass redemptions:
- • 5% USDC reserve: Handles immediate small redemptions
- • Orderly unwinding: Positions closed systematically to minimize slippage
- • Fair queue system: First-in, first-out processing
- • Transparent process: Queue status visible on-chain
All token holders receive their proportional share of assets, though large redemptions may take longer to process.
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