> For the complete documentation index, see [llms.txt](https://docs.heroglyphs.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.heroglyphs.com/seba/vault-system.md).

# Vault System

The vault system in Seba guarantees fair yield distribution and promotes long-term engagement.

### How does it work?

Before the first graduation, the Yield Vault compounds all yield to maximize growth. After the first graduation event, the vault switches modes:

* Capturing yield every five epochs and sending it to the pybSeba Vault for distribution.
* Allowing shareholders to claim their portion of sBOLD by burning shares in proportion to the claim amount.

This dynamic creates an interesting strategic decision for graduates:

* Claim early and secure a portion of the initial rewards.
* Hold shares and enjoy a continuous stream of yield, which could increase as more validators participate over time.

### Total Number of Shares

The total number of shares is capped based on the total shares ever created for graduated validators.