ZK Fund Overview
ZK OTC is the capital execution layer of ZKFund. It enables private fund operation, OTC trading, and treasury management under cryptographically enforced governance—without exposing LP identities, balances, strategies, or execution paths.
ZK OTC is designed for situations where capital must move, but information must not.
What ZK OTC Is
ZK OTC is a system for creating and operating private fund vaults that:
Accept capital from LPs without revealing contributor identities
Execute trades and allocations without leaking strategy
Enforce fund governance without public wallets or multisigs
Settle assets privately through ZK Pools
Remain auditable through proof-based verification
It brings on-chain enforcement to what is traditionally handled off-chain in private funds and OTC desks.
What ZK OTC Is Not
ZK OTC is not:
A public AMM
A visible vault with on-chain balances
A copy-trading platform
A trust-based fund manager system
ZK OTC does not rely on reputation, discretion, or off-chain agreements. Every action is enforced by protocol rules and proofs.
The Problem ZK OTC Solves
Traditional OTC desks and private funds face structural limitations on-chain:
Large wallets are visible and front-runnable
LP lists and balances leak capital structure
Strategy execution can be reverse engineered
Governance is off-chain and unenforceable
Internal approvals are opaque but not verifiable
ZK OTC addresses these issues by making privacy and enforceability first-class primitives.
Core Capabilities
ZK OTC enables:
Private Fund Vaults Capital pooled without public balances or addresses
Private Capital Movement Swaps, transfers, and allocations executed without traceability
Governance-Gated Execution Every action requires ZK DAO authorization
LP Privacy Contributions, withdrawals, and share ratios are hidden
Proof-Based Accountability Actions are verifiable without disclosure
ZK OTC as a Governed Execution Engine
In ZKFund, ZK OTC does not operate independently.
All actions inside a ZK OTC vault must satisfy:
A valid governance proposal
A finalized ZK DAO decision
Required ZK multisig execution proofs
Settlement constraints defined by the vault
There is no concept of a “trusted fund manager” acting alone.
Typical Use Cases
ZK OTC is designed for:
Institutional OTC trading desks
Private hedge funds and syndicates
DAO-managed treasuries
Strategy vaults with confidential positioning
Cross-chain capital routing without leakage
In all cases, strategy confidentiality is preserved end-to-end.
Privacy Guarantees
ZK OTC ensures that the following remain private:
LP identities and contribution history
Vault balances and asset composition
Trade size, timing, and routing
Counterparties
Internal approval structure
Observers can only verify that:
Governance rules were followed
Execution was authorized
Settlement was valid
Why ZK OTC Matters
Without a private execution layer:
Governance privacy collapses at execution
Capital becomes a signal
Funds become targets
ZK OTC ensures that:
Capital can move without being observed
Strategies cannot be inferred
Governance decisions remain confidential
Relationship to ZK DAO
ZK OTC is governed entirely by ZK DAO.
ZK DAO defines who can act
ZK DAO approves what can be executed
ZK DAO enforces thresholds and constraints
ZK OTC executes and settles privately
There is no separation between governance intent and capital control.
ZK OTC is the operational backbone of ZKFund— where private governance becomes private execution.
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