**NOTE: **

We have made the difficult decision to suspend all withdrawals, trading, and deposits on the Vauld platform with immediate effect. We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors. We seek the understanding of customers of the Vauld platform that we will not be in a position to process any new or further requests or instructions in this regard.

Interest will continue to accrue on existing deposits as per the terms of the underlying contractual agreements.

To read more about this, please visit: https://support.vauld.com/en/collections/2888465-vauld-announcements-and-faqs

**What is an FD?**

Fixed deposits let you earn a higher interest rate on your funds, by locking in your funds for a 1-month period. You can check the annualized fixed deposit interest rates (effective since April 22, 2021) for each token by clicking on the link below:

http://support.vauld.com/en/articles/5213325-our-interest-rates

**How do I opt-in to an FD?**

From your Home Screen click on [Fixed Deposits]

2. On the left you can click on BTC and select the token you want to place in an FD

3. You can click on the toggle to switch off auto-renew. When this feature is switched off, both your principal and interest earned will be returned to your wallet after a month. Else, both principal and interest will go back into the FD and the FD will be renewed for another month.

4. Click on the [Create Fixed Deposit] button and you will see a success message

5. You can view the recently created FD as the first entry under *Active Fixed Deposits*

**Can I opt-out of an FD at any time? Is there any penalty if I opt-out?**

You can opt out of an FD at any point in the month and receive the base interest for those number of days.

For example, you place 'x' amount of USDT in a Fixed Deposit. You intend to keep it there for a month and at the *FD interest rates* expect an interest of 10 USDT at the end of the month. Assume that the same x USDT would have earned you 2 USDT interest per week at *base interest rate*. Now, let's say that after three weeks you decide to opt out of the FD. Once you opt out, the principal amount x is credited to your wallet. Additionally, you will receive the base interest for the three weeks, which is 6 USDT (2 USDT/week X 3 weeks = 6 USDT).

**How much will I earn in a fixed deposit?**

Please refer to the APY rates in the table above. We will illustrate two examples.

Example 1: Let's assume you deposit **1000 USDT**. Our APY rate for USDT is 12.68%

If you deposit 1000 USDT at 12.68% APY (interest compounded monthly) and let it renew over a period of 3 months, your total balance at the end of the 3rd month - with the original 1000 USDT deposit in the first month - will be 1030.30 USDT. Thus, you would have earned 30.30 USDT as interest for the 3 months of deposit.

(Please note that because of the effects of compounding, this is not the same as dividing 12.68% by 12 - to get the monthly rate - and then multiplying by 3 to get the rate for 3 months).

Example 2:

Disclaimer: The below example uses illustrative rates which may not match the current values.

Let's assume a deposit of 1 BTC. The asset is placed in an FD with an interest rate of 7%. Upon maturation after a month, the FD will payout with an interest of

Thus, the total payout at the end of the first month will be **1.00575343 BTC**

If you choose to keep your FD in an auto-renew with both the principal and interest getting renewed then the next month's interest shall be

With the total payout at the end of the second-month being

This way each subsequent month proceeds and results in a yearly interest of 7.23% which is the stated APY.

**How often will I get an interest payout?**

If you have funds in a fixed deposit, you will receive the payout at the end of the fixed deposit term.

** **

**Is my principal amount compounded after every payout?**

Yes, your principal amount is compounded at the end of every payout which is every month.

Also, you can go through this video on Youtube video on our channel, which will give you more insight on the same - https://vauld.me/FixedDeposit