> ## Documentation Index
> Fetch the complete documentation index at: https://docs.priest.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# Counterflow Overview

> The Counterflow Vault is Priest.trade's automated liquidity vault. It lets passive liquidity providers deposit USDC to back graduated per...

The **Counterflow Vault** is Priest.trade's automated liquidity vault. It lets passive liquidity providers deposit USDC to back graduated perpetuals markets on Monad and earn real yield.

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## What is Counterflow?

On Priest.trade, graduated markets are backed by an ERC-4626 vault (`CounterflowVault.sol`):

* **Deposit USDC, get `cfUSDC`:** When you deposit native Circle USDC, you receive `cfUSDC` shares.
* **Counterparty to graduated markets:** If a backed market runs into a temporary deficit paying out winning traders, Counterflow steps in to cover the difference.
* **Earns platform yield:** In exchange, Counterflow receives:
  1. **30% of all protocol trading fees** from backed markets.
  2. **The market surplus** when traders lose (what traders lose repays past covers first, with the remainder becoming vault profit).
* **Redemption cooldown:** To stop people from front-running losses by withdrawing right after a big market move, withdrawals use a **3-day cooldown**.

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## Tokenized shares: `cfUSDC`

Counterflow uses the standard ERC-4626 vault design:

* **Underlying asset:** Native Circle USDC on Monad.
* **Share token:** `cfUSDC`.
* **Value appreciation:** As trading fees and market surplus flow into the vault, each `cfUSDC` share becomes worth more USDC over time:
  $\text{Share Price} = \frac{\text{Total Vault USDC (NAV)}}{\text{Total cfUSDC Shares}}$
* When you burn your `cfUSDC` shares during withdrawal, you get back your initial deposit plus your share of accrued earnings.

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## Which markets does it back?

Counterflow doesn't back brand-new coins during their initial vAMM launch. It only backs:

* **Graduated markets:** Once a coin graduates and seeds its locked Uniswap v4 spot pool, it is automatically backed by Counterflow.
* **Selected listed markets:** Coins with deep, verified spot pools where the operator turns on backing.

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## Contract Addresses

| Network | Contract | Address |
| - | - | - |
| **Monad Mainnet (143)** | `CounterflowVault` (`cfUSDC`) | `0x7AA4Bc202A7FB54766b83D8a01046248D1b250F1` |
| **Monad Testnet (10143)** | `CounterflowVault` (`cfUSDC`) | `0x0cDa05B16734793AeF452C983bE5773c720Da471` |

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## See also

* [Depositing & Withdrawing cfUSDC](https://docs.priest.trade/vaults/depositing-and-withdrawing.md) — step-by-step deposit and redemption guide.
* [NAV, Yield & Profit Unlocking](https://docs.priest.trade/vaults/nav-and-yield.md) — how yield and NAV are calculated.
* [Risk Controls & Exposure Caps](https://docs.priest.trade/vaults/risk-controls.md) — safety caps protecting LPs.


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