FAQ

General

What is Taurox?

Taurox is a decentralized trading protocol that allocates pooled capital across autonomous trading agents. Users stake crypto assets into a shared pool, and proven agents trade the pool on their behalf. Profits are distributed between stakers and agent creators in a hedge fund model.

Do I need to use the trading pool to use the wallet?

No. The Taurox Wallet is a fully featured, standalone crypto wallet. Users can hold, send, receive, and swap assets without participating in the trading pool. Pool staking is entirely optional.

What makes Taurox different from copy trading or social trading?

Copy trading replicates one trader's positions. Taurox distributes capital across millions of independent trading agents, each operating its own strategy. The protocol manages allocation, risk controls, and diversification at the system level rather than relying on a single trader's decisions.

Staking

How do I stake my assets?

Users deposit assets from the Taurox Wallet into the trading pool. Staking is configurable, and users select the amount they wish to commit. Upon deposit, the protocol mints txTokens representing the staker's share of the pool and accrued returns.

How much will I earn?

Returns vary based on the collective performance of all active trading agents, net of fees. There is no fixed yield. Earnings depend on market conditions, agent performance, and pool composition.

Can I withdraw at any time?

Stakers can initiate a withdrawal at any time. The protocol processes withdrawals within 48 hours or per the staker's agreed staking terms. Traditional hedge funds impose quarterly or annual redemption windows, often with 30 to 90 day notice periods. Taurox treats liquidity as a design requirement, not a concession. A 15% reserve buffer held in stablecoins ensures withdrawal capacity is maintained at all times.

What are txTokens?

txTokens are ERC-20 tokens minted when a user deposits into the trading pool. Each txToken represents a proportional share of the pool's total value, including accrued returns. As agents generate profits, the redemption value of each txToken increases. Upon withdrawal, txTokens are returned to the protocol and burned.

Agents

What is a trading agent?

A trading agent is an autonomous program that executes a defined trading strategy. Agents are built and submitted by external developers, quants, and AI builders. Each agent sources its own market data and implements its own logic. The protocol provides capital access, not data infrastructure.

How are agents vetted?

Every agent passes through two stages before receiving pool capital. First, the KYA (Know Your Agent) framework classifies the agent's strategy type and risk profile. Second, the agent trades with real capital funded by the agent creator in the proving ground until its performance metrics reach statistical significance. This ensures skin in the game from the outset. Only agents that meet the qualification thresholds are promoted to pool trading.

Can anyone submit an agent?

Yes. The agent marketplace is open to any developer. Agents are evaluated purely on demonstrated performance, not on the identity or reputation of the creator.

What happens if an agent loses money?

Each agent operates within per-agent stop-loss limits and drawdown circuit breakers. If an agent's losses exceed defined thresholds, the protocol automatically pauses or demotes the agent and reduces its capital allocation. No single agent can jeopardize the overall pool due to capital caps.

Can an agent withdraw funds from the pool?

No. Agents receive trade-only access through exchange sub-accounts or on-chain vault contracts. No agent, sub-account, or API key can initiate a withdrawal. Only stakers can withdraw funds through the protocol's withdrawal contract.

Risk

What are the risks of staking?

Staking involves exposure to the collective trading performance of all active agents. While diversification across many agents and strategies reduces correlated risk, trading losses can occur. Smart contract risk, market volatility, and liquidity constraints are inherent to any DeFi protocol.

How does the protocol manage risk?

Risk management operates at multiple levels. Per-agent controls include capital caps, stop losses, and circuit breakers. Pool-level controls include daily drawdown halts and a reserve buffer held in stablecoins. The KYA framework enforces strategy diversification to prevent overexposure to any single trading approach.

Is my capital guaranteed?

No. Taurox does not guarantee returns or principal. The protocol enforces risk controls to limit losses, but trading carries inherent risk. Stakers should only commit capital they can afford to expose to market conditions.

Token

What is TAUX used for?

TAUX is the native utility token of the protocol. It serves as the key to pool access: a staker must hold TAUX proportional to the amount they wish to deposit. Holding 1% of the total supply grants the right to stake up to 1% of the pool's capacity. TAUX is also used for governance voting, agent creator bonds, and staking incentives. Performance fees are deducted from realized profits and converted to TAUX at the point of collection. There is no management fee. Fees are extracted automatically from trading returns.

How does the burn mechanism work?

A fixed percentage of all fees collected by the protocol is permanently burned. The remainder flows to the protocol treasury, governed by the DAO. As the pool grows and generates more trading activity, burn volume increases proportionally, reducing the circulating supply of TAUX over time.

Do I need TAUX to stake in the pool?

Yes. TAUX holdings determine a staker's maximum pool allocation. The amount a user can deposit is proportional to their share of the total TAUX supply. This ensures that demand for pool access translates directly into demand for TAUX. TAUX is also required for governance participation and is used by agent creators for submission bonds.

What happens if I hold TAUX but don't stake?

Allocation rights always belong to the holder. If a TAUX holder is not using their allocation, the idle capacity is temporarily made available to other participants through a 60-minute bidding process. When the original holder decides to stake, their capacity is returned automatically, along with any profit or loss accrued by the temporary user. No holder ever loses their rights.