FAQ

Frequently asked questions about NFTH.

General

What is NFTH?

NFTH is an NFT fractionalization protocol for HyperEVM. It allows you to deposit NFTs into vaults and receive fungible vTokens that can be traded on DEXs.

Is NFTH free to use?

Mostly yes. Minting and random redeems are free (0% fee). Only targeted redeems have a 1% fee.

Who created NFTH?

NFTH is a fork of NFTX V2, adapted for HyperEVM as a public good.

Vaults

Can anyone create a vault?

Yes, vault creation is permissionless. Anyone can create the first vault for a whitelisted collection.

Why can't I create a second vault for a collection?

The NFTH frontend enforces one vault per collection to prevent liquidity fragmentation. This keeps all vTokens for a collection fungible and trading in a single market.

If a vault already exists, clicking that collection redirects you to the existing vault.

But I want a trait-specific vault (e.g., only gold fur cats)?

The smart contracts support multiple vaults with custom eligibility (e.g., vTHC-GOLD for gold fur cats, vTHC-WIZ for wizards). However, the frontend intentionally doesn't support this because trait-specific vaults fragment liquidity.

The goal of NFTH is NFT fungibility as a primitive - one canonical vToken per collection that can plug into DeFi. If you have a specialized use case, you can interact with the contracts directly. See the Contracts Reference.

Can vault settings be changed after creation?

No. Vaults are immutable once deployed. Eligibility rules, fees, and other settings cannot be changed.

What happens if I deposit to the wrong vault?

You can always redeem your vTokens for NFTs from that vault. Make sure to verify the vault before depositing.

vTokens

What are vTokens?

vTokens are ERC-20 tokens issued by vaults. Each vToken represents 1 NFT deposited in the vault.

Are vTokens always worth exactly 1 NFT?

vTokens are redeemable for 1 NFT, but their market price may vary. Arbitrage keeps prices close to floor price.

Can I have fractional vTokens?

Yes. vTokens have 18 decimals like most ERC-20 tokens. You can hold 0.5 vTokens, but you need at least 1 to redeem an NFT.

Where can I trade vTokens?

vTokens can be traded on any DEX that supports ERC-20 tokens on HyperEVM.

Minting and Redeeming

Why would I mint vTokens?

• Access liquidity without selling your NFT permanently
• Provide liquidity to DEX pools
• Use in DeFi protocols

What's the difference between random and targeted redeem?

• Random (0% fee): You get a random NFT from the vault
• Targeted (1% fee): You choose which specific NFT to receive

Can I get my exact NFT back?

Only if it's still in the vault. Use targeted redeem (1% fee) to select your specific NFT.

What if the vault is empty?

You cannot redeem if the vault has no NFTs. Your vTokens remain tradeable on DEXs.

Fees

Where do fees go?

Fees go to the protocol treasury for development, audits, and infrastructure.

Why is targeted redeem not free?

The 1% fee compensates for option value. Choosing a specific NFT (especially rare ones) has value beyond floor price.

Will fees change?

Fee percentages are hardcoded in contracts and cannot be changed after deployment.

Frontend vs Contracts

What's the difference between what the frontend supports and what the contracts can do?

The NFTH smart contracts are flexible and support advanced features like multiple vaults per collection and custom eligibility rules. The frontend intentionally limits these options to provide a simpler UX:

This "opinionated frontend, permissionless contracts" approach lets us guide best practices while preserving protocol flexibility.

Can I use features the frontend doesn't support?

Yes. The contracts are permissionless. You can interact with them directly via block explorers, scripts, or your own frontend. The Contracts Reference documents the full API.

Security

Are the contracts audited?

The contracts are forked from NFTX V2, which has been audited. The NFTH modifications have been reviewed but not formally audited yet.

Can toast steal my NFTs?

No. Vaults are immutable and trustless. toast cannot access NFTs in vaults.

What if there's a bug?

The protocol owner can pause the factory in emergencies. Individual vaults can also be paused if needed.