> For the complete documentation index, see [llms.txt](https://docs.superlend.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.superlend.xyz/products/vaults/high-yield-vaults/how-it-works.md).

# How it works

High Yield Vaults automatically use leverage to amplify exposure to an asset and pursue higher yield.

They manage looping, rebalancing, and unwinding for you.

***

### **Quick Overview**

At a high level, the vault:

1. Supplies the deposited asset as collateral
2. Borrows against that collateral
3. Swaps borrowed funds back into the base asset
4. Repeats the process up to safe leverage limits

This increases exposure relative to your initial deposit. As the vault’s total assets grow, the value of your vault shares increases.

***

### **Depositing**

You can deposit in two ways:

#### **Direct Deposit**

* Deposit the vault’s base asset (e.g. USDe, XTZ or WBTC)
* Receive vault shares immediately

#### **Deposit With Another Token**

* Deposit a supported token
* The vault swaps it into the base asset automatically before depositing

Before confirming, you will see:

* The number of shares you’ll receive
* Your estimated position value
* Swap details and slippage settings (if applicable)

***

### **Withdrawing**

You can withdraw at any time using one of two methods:

#### **Instant Withdrawal**

* Available if the requested amount is within the vault’s base asset reserves
* Shares are redeemed immediately

#### **Scheduled Withdrawal**

* Used when funds are actively looped
* The vault automatically unwinds positions to release liquidity
* Processed within \~10 minutes once conditions match your slippage settings
* Tokens can then be claimed

*Additional notes:*

* *You can cancel a scheduled withdrawal before it completes*
* *Partial withdrawals are supported*
* *Only one active or unclaimed scheduled withdrawal is allowed at a time*
* *Instant withdrawals remain possible if sufficient liquidity is available*

***

### **Vault Shares & Exchange Rate**

Your position is represented by vault shares.

The exchange rate between shares and the base asset may fluctuate slightly due to:

* Flashloan repayments
* Swap buffers and slippage
* Timing of rebalancing cycles

A callback mechanism ensures any leftover tokens are quickly reinvested, keeping fluctuations small and short-lived.


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