> For the complete documentation index, see [llms.txt](https://flipper-3.gitbook.io/flipper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://flipper-3.gitbook.io/flipper-docs/protocol-overview/collateral-vaults.md).

# Collateral Vaults

Flipper uses on-chain smart contract vaults to manage collateral throughout the trading lifecycle.

The current version of Flipper is available on Solana. Support for EVM-compatible networks is planned for future releases.

Collateral deposited into Flipper is held in the protocol's smart contract vaults and allocated to support leveraged trading across supported execution venues.

## <mark style="color:$primary;">Supported Collateral</mark>

The following assets can currently be used as collateral:

* USDC
* USDT
* SOL (automatically wrapped to wSOL when deposited)
* wBTC
* wETH

Available collateral assets may expand in future releases.

## <mark style="color:$primary;">Collateral Lifecycle</mark>

Throughout the lifetime of a position, Flipper manages collateral according to protocol logic and the requirements of the underlying execution venue.

This includes:

* Holding collateral while a position remains open
* Allocating collateral to the selected execution venue(s)
* Supporting partial and full position closures
* Processing Stop-out Protection when enabled
* Settling realized PnL after a position is closed
* Collecting and distributing applicable protocol fees

Once a position is closed, any remaining collateral and realized PnL are returned to the user's trading balance.

## <mark style="color:$primary;">Isolated Positions</mark>

Every position opened through Flipper is isolated from other positions.

This means that collateral assigned to one position is not shared with other open positions.

If a position is stopped out or externally liquidated, only the collateral allocated to that specific position is affected.

Other open positions and any remaining available collateral are not impacted.

{% hint style="info" %}
**Note** Users do not need to manually move collateral between execution venues. Flipper manages collateral allocation, settlement, and position accounting throughout the entire trading lifecycle.
{% endhint %}