# Vaults ArcherSwap's vaults enable users to deposit LP tokens, unlocking the potential to earn additional rewards on their deposits. A vault operates as a smart contract strategy, employing an algorithm designed to automate the intricate process of auto-compounding assets. To illustrate, in conventional yield farming, users contribute LP tokens and receive a reward token in return. By opting for a vault and initiating the "Compound" action, the vault performs a series of automated steps. This includes harvesting pending rewards, selling half of the reward tokens, using the proceeds to purchase paired assets, and employing those assets to add liquidity. Consequently, this process leads to an automatic increase in the user's LP token holdings. ArcherSwap's vaults distinguish themselves by providing users with auto-compounded rewards that surpass those offered by non-compounded rewards in traditional yield farms. This not only enhances potential earnings but also minimizes user efforts, reduces gas fees, and safeguards their profits. ## Vault Fees There are no deposit fees. Standard withdrawal vault fees are set at 0.1%. This is to prevent bad actors from going in and out of the vault quickly to reap the harvest and then leaving. Many of the vaults will allow the users to generate returns over the withdrawal fee in less than 24 hours. **How the vault strategy works on ArcherSwap** 1. Either the contract or the user calls compound 2. The Contract harvests the reward 3. 99.5% of the harvest is compounded back to the user’s deposits (LP tokens) 4. 0.5% of the harvest is used to buy WCORE to reward the caller of the compound button. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.archerswap.finance/products-and-features-guide/vaults.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.