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❓ Frequently Asked Questions (FAQ)

🧺 What is a "basket" or an "index"?​

Think of a basket as a crypto exchange-traded fund (ETF). It's a single token that represents a collection of different cryptocurrencies. By buying and holding one basket token, you get diversified exposure to all the assets inside it, according to the weights chosen by the basket's creator.

💸 How do I invest in a basket?​

Investing is simple. You deposit USDC into the basket of your choice. The protocol then buys the correct proportions of all the underlying assets in the basket. In return, you'll receive a new token that represents your personal share of that basket.

📤 How do I get my money out?​

You can redeem your basket tokens at any time. When you do, the protocol sells your proportional share of the underlying assets, converts them back into USDC, and sends the USDC directly to your wallet.

💰 What are the fees and who receives them?​

Each index is charged a 1% annual fee, which is collected daily. This consists of a 0.9% fee that goes to the protocol treasury, and a 0.1% creator fee that is awarded to the index creator once the basket's TVL is above $10,000. Before this threshold is reached, the full 1% goes to the treasury.

⚖️ What is rebalancing and why is it important?​

Let's say a basket is designed to be 50% SOL and 50% JUP. If the price of SOL goes up significantly, your basket might naturally drift to being 65% SOL and 35% JUP. Rebalancing is an automated process that sells some of the overweight asset (SOL) and buys the underweight one (JUP) to return the basket to its 50/50 target. This ensures the basket stays true to its original investment strategy and "locks" profits in.

🤖 How does the protocol rebalance?​

Rebalancing happens in two ways. First, when users buy into a basket, the protocol intelligently uses their USDC to purchase more of the underweight assets, passively nudging the basket back to its target. Second, a daily keeper bot checks for any significant drift and will actively execute trades if the deviation passes a certain threshold.

🚨 What happens if my transaction fails? Are my funds lost?​

No, your funds are safe. The contract includes several emergency rescue functions for this exact reason. If a transaction fails midway, your funds are held in a secure, temporary "escrow" account tied to your wallet. You can then use the rescue function on the dApp to safely recover 100% of your funds from that escrow.

✅ Can I create my own basket? Are there rules?​

Yes! To ensure quality and safety for investors, there are a few rules:

  • Your basket must contain at least 2 unique assets
  • All assets must be from the protocol's pre-approved whitelist.
  • The weight of any single asset must be between 2.5% and 50% of the total basket.

🔒 Is it secure?​

Security is our top priority. The protocol is non-custodial, meaning you always control your funds. All trades are executed through Jupiter, and all on-chain prices are verified against Pyth Network's high-fidelity oracles to prevent manipulation.

📞 Need Help?​

If you have any questions, issues, or want to report a bug:

📧 Email: team@baskets.so
🌐 Discord: https://discord.gg/dcWYu92D