# Vault Strategies and Mechanics
**What is a vault, and how does it work on TONYield?**
A vault in TONYield is a smart contract that automates particular yield-generating strategies, such as liquidity provisioning and staking. Users provide liquidity into the vaults, which then strategically deploys them into different protocols to maximize returns.
**What types of strategies does TONYield employ?**
TONYield employs various strategies including liquidity provisioning, staking, and arbitrage across multiple DeFi protocols to optimize returns.
**What assets are accepted in TONYield vaults?**
Assets like TON, USDT, and TON staked versions such as tsTON and stTON are accepted, allowing a broad range of opportunities for yield.
**What is the projected APY, and how is it calculated?**
The projected APY depends on the strategies employed and the performance of the underlying protocols. It's calculated based on the returns from these strategies over a year, adjusted for risk and the cost of operations.
**How does TONYield manage impermanent loss and other risks?**
TONYield employs strategies such as hedging and diversification to minimize risks like impermanent loss. Additionally, smart contracts and rigorous security protocols are in place to safeguard user assets.
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