Standard vs. Flex Vaults

Understand the differences between Standard and Flex vaults to choose the right option for your needs.

Tholos offers two types of vaults — Standard Vault and Flex Vault — to cater to different user needs for managing and securing digital assets. Understanding the key features and ideal use cases of each can help you determine the best option for your requirements.

Standard Vault

The Standard Vault is designed for users who prioritize full independence and minimal counterparty risk. With this type of vault, you retain complete control over your key shares, and Tholos does not hold any.

Key Features

  • Full Independence: You manage all key shares. Tholos holds none, ensuring total self-custody.
  • Synchronous Signing: Transactions require full alignment, maximizing security and consensus.
  • Ultimate Sovereignty: You independently control total access to your vault, free of external involvement.

Best Suited For

  1. Long-term Asset Holding: Ideal for institutions aiming to securely store assets with minimal transaction frequency.
  2. Backup Vaults: A hyper secure option for storing backup funds or reserves.
  3. Decentralized Crowdfunding: Suitable for DAOs that collect and hold funds without requiring frequent access.
  4. Individual High-value Portfolios: High-net-worth individuals who demand absolute control over their personal or departmental assets.

Flex Vault

The Flex Vault is tailored for users who need an adaptive and asynchronous solution. Tholos retains certain key shares, enabling features that improve transaction speed and operational workflows.

Key Features

  • Collaborative Security: Tholos retains key shares to facilitate advanced functionality. However, Tholos cannot independently approve transactions. (e.g. if the vault threshold is 3 signatures, Tholos will retain 2 key shares)
  • Asynchronous Approvals: Speeds up transaction processes by allowing approvals to be completed independently by individual vault signers.
  • Policy Engine: Customizable rules and conditions for transaction approval to ensure flexibility and security.

Best Suited For

  1. Operational Vaults: Best for institutions handling frequent transactions where speed and efficiency are critical.
  2. Collaborative Investment Funds: Suitable for teams or DAOs pooling resources for joint investments.
  3. Payroll and Expense Vaults: Designed for organizations disbursing funds to employees or covering operational expenses frequently.
  4. Dynamic Trading Vaults: Ideal for entities requiring quick market reactions, leveraging asynchronous approvals.
  5. Joint Venture Operations: Perfect for projects requiring shared fund management with checks and balances.

Making the Decision

To choose the right vault, consider:

  • Control vs. Collaboration: Do you prefer full independence or the benefits of a collaborative approach to custody?
  • Transaction Frequency: Will your vault handle frequent transactions, or is it primarily for long-term holding?
  • Feature Requirements: Do you need policy customization, asynchronous approvals, or advanced operational tools?

By understanding your priorities and the unique benefits of each vault, you can select the one that aligns with your goals.