> For the complete documentation index, see [llms.txt](https://docs.takadao.io/the-lifedao-kb/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.takadao.io/the-lifedao-kb/products-and-benefits/investment-pools/btc-eth-vault.md).

# BTC-ETH Vault

Explore the BTC-ETH Vault, its strategy, and key risks.

The BTC-ETH Vault gives you a simple way to invest in Bitcoin and Ethereum, the two largest cryptocurrencies.

It automatically decides when to earn trading fees and when to hold BTC and ETH directly. Smart contracts follow the vault's rules, so you do not need to watch the market or make those decisions yourself.

### Key details

* Phase 1 uses USDC.
* The vault manages BTC and ETH.
* It runs on Arbitrum.

### How it works

* Deposit USDC and receive a proportional share of the vault.
* The vault converts your deposit into a BTC and ETH allocation.
* Smart contracts monitor how closely BTC and ETH prices move together.
* When they move closely together, the vault earns trading fees. When they do not, it holds BTC and ETH directly.
* You can request a withdrawal at any time. During Phase 1, withdrawals are paid in USDC.

{% hint style="info" %}
BTC and ETH prices can move quickly. The value of your vault holding can rise or fall with the market.
{% endhint %}

### Key risks

* If BTC or ETH prices fall, your vault balance can fall.
* If BTC and ETH move in different directions, liquidity positions can earn less than simply holding them.
* A problem in the vault or Uniswap smart contracts could affect funds.
* The strategy relies on past BTC and ETH price patterns. Future markets may behave differently.
* Extreme markets can cause price slippage when the vault changes position.

### Learn more

Read the [whitepaper](/the-lifedao-kb/products-and-benefits/investment-pools/btc-eth-vault/whitepaper.md) and [Shariah paper](/the-lifedao-kb/products-and-benefits/investment-pools/btc-eth-vault/shariah-paper.md).

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