Core Fund Actions
Core Fund Actions define what a private fund vault is allowed to do and how those actions are executed without exposing financial or strategic information.
Every action follows the same invariant:
No action without governance. No execution without proof. No settlement without privacy.
1. Private Swap
Purpose: Execute asset swaps without revealing trade size, timing, route, or counterparties.
Flow:
Fund Manager creates a swap proposal
ZK DAO defines approval thresholds
Required signers submit ZK multisig proofs
Swap is executed via ZK Pool
Proof receipt is published
Privacy Guarantees:
No visible swap amount
No visible asset pair
No routing information
No execution timing signal
Use Cases:
OTC accumulation
Position rebalancing
Liquidity migration
2. Private Withdrawal
Purpose: Allow LPs or managers to withdraw capital without revealing who withdrew, how much, or when.
Flow (LP Withdrawal):
LP submits a proof-of-share
Governance verifies withdrawal eligibility
Manager or signer approval is proven
Funds are sent to a new stealth address
Proof receipt confirms validity
Privacy Guarantees:
LP identity hidden
Withdrawal amount hidden
Destination address hidden
No withdrawal history leakage
Controls:
Withdrawal limits
Cooldown periods
Role-based approvals
3. Strategy Allocation
Purpose: Allocate capital across strategies without exposing allocation ratios or execution logic.
Examples:
Allocate 30% to market making
Allocate 20% to yield strategies
Allocate remainder to stable reserves
Execution Model:
Allocation proposal defines constraints
ZK DAO approves strategy bounds
Execution occurs privately
Allocation correctness proven via ZK circuits
Privacy Guarantees:
No public allocation percentages
No asset composition disclosure
No execution order visibility
4. Private NAV Tracking
Purpose: Provide fund performance reporting without revealing internal positions.
Model:
NAV is computed using ZK circuits
Asset values remain hidden
Only aggregate metrics are revealed
Possible Outputs:
NAV multiplier (e.g., 1.28×)
Performance ranges
Proof of non-negative equity
Privacy Guarantees:
No position-level data
No historical trade reconstruction
No LP balance exposure
5. Emergency Actions (Optional)
Purpose: Protect capital during abnormal conditions without panic signaling.
Examples:
Emergency execution freeze
Temporary strategy halt
Elevated approval thresholds
Properties:
Governance-gated
Proof-based
Non-discretionary
Emergency actions do not expose internal state unless explicitly disclosed.
Action Invariants
All core fund actions share these invariants:
Governed by ZK DAO
Approved via ZK multisig
Executed privately
Settled via ZK Pool
Logged via proof receipts only
Why Core Actions Are Limited
ZKFund intentionally limits the action surface.
This:
Reduces attack vectors
Simplifies auditing
Prevents governance abuse
Preserves privacy guarantees
Additional actions must be explicitly added via governance.
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