1. Signal extraction
Centaur monitors the tracked trader’s public posts and extracts structured trade events (asset, direction, action, and any stated levels) using the same pipeline described in How It Works and Trade Events. Extracted data is cross-checked against the original source posts before it is acted on. Extraction is not perfect.2. Interpretation
The vault trades Centaur’s reading of the signal, not the trader’s book. Centaur does not know the trader’s actual positions, sizes, entries, or exits, and does not try to replicate them. Interpretation covers:- Which signals to act on. Not every post becomes a position. Stale, ambiguous, or untradable signals are skipped.
- Direction. Most vaults follow the signal. Inverse vaults take the opposite side.
- Holding logic. A position is treated as open until the trader signals an exit or a price level is hit, even if Centaur’s automated position tracking has closed it on a timer.
3. Market mapping and eligibility
Each signal is mapped to a Lighter perpetual market. An asset is excluded if:- it is not listed on Lighter
- its market is isolated-margin only, which is incompatible with cross-margin vaults
- its market is reduce-only or otherwise not yet open for new positions. These are queued and entered once the market opens
- its volume or order-book depth is too thin to trade responsibly
4. Sizing and leverage
- Position size tries to reflects the trader’s apparent conviction and the asset’s role in the book. Concentrated books are allowed.
- Leverage scales with asset risk: higher for liquid large caps, lower for thin or volatile assets.
- Gross notional exposure may exceed 100% of vault NAV.
- All positions share cross-margin within the vault, so a loss on one position reduces the margin available to every other position.
5. Stops and targets
- Trader-stated levels are used where they exist. Each vault page states explicitly which stop and target levels came from the trader’s own posts.
- Otherwise Centaur sets them. Many traders never post stops or targets. In those cases, Centaur sets levels based on market structure. Stops are deliberately wide and anchored to structure rather than tight.
- Stops can be tighter than the trader’s own invalidation when needed to manage vault leverage.
- Some positions carry no stop by design. Where this applies, it is disclosed on the vault page.
- Take-profits are trim and review points, not necessarily full exits.
6. Execution
- Entries use limit orders placed close to the prevailing price for liquid markets, and resting limits for illiquid markets.
- Stops are reduce-only stop-market orders triggered on Lighter’s mark price.
- Take-profits are reduce-only resting limit orders.
- After a first take-profit fills, the stop may be moved to breakeven.
- All levels are set as absolute prices.
7. Review
By default, vaults hold. Positions are revisited when:- the trader posts a new signal (entry, add, trim, or exit)
- a stop or target level is hit
- market eligibility changes, for example a queued market opens or a market is delisted