BakerFi Leveraged Vault

BakerFi separates user accounting from capital management.

Users interact with the Vault. They deposit ETH, receive transferable share tokens, and later return those shares to withdraw their portion of the vault’s assets.

The Vault does not manage the leveraged position itself. It forwards deposited capital to a separate Strategy, which manages collateral, debt, and the underlying position.

This separation creates two distinct responsibilities:

• The Vault tracks who owns what.
• The Strategy decides how the capital is deployed.