> For the complete documentation index, see [llms.txt](https://docs.clovis.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clovis.network/clovis/earn/clotokens-and-vault-yield.md). # cloTokens and Vault Yield Learn how cloTokens represent Clovis Earn Vault shares, how Vault yield changes their value, and what happens when you supply or withdraw assets. When you Supply an asset to a Clovis Earn Vault, you receive a `cloToken` representing your share of that Vault. The `cloToken` balance is not a fixed one-to-one display of the underlying asset. As the value of the Vault changes, the amount of underlying asset represented by each share can also change. ## What Is a cloToken? A `cloToken` is a yield-bearing share of an Earn Vault. | Asset Supplied | Vault Share Received | | -------------- | -------------------- | | USDC | `cloUSDC` | | USDT | `cloUSDT` | | WETH | `cloWETH` | | cbBTC | `clocbBTC` | Your `cloToken` balance shows how many Vault shares you hold. The estimated underlying value shows how much of the original asset those shares currently represent. For example, `cloUSDC` represents a share of the USDC Vault. It is not another version of USDC and does not have to remain equal to 1 USDC. ## What Happens When I Supply? When you Supply an asset: 1. You choose an Earn Vault and enter the amount you want to Supply. 2. Clovis receives the underlying asset through its connected-network liquidity infrastructure. 3. The Vault calculates the current share price. 4. You receive the corresponding amount of `cloToken` shares. 5. Your Flexible Earn position appears in Portfolio. The number of shares you receive depends on the Vault share price at the time of Supply. The app shows the estimated `cloToken` amount before you confirm the transaction. For a cross-network Supply, the source transaction and resulting position can complete at different times. The app shows the current status while the position is being processed. ## How Will the Vault Generate Yield? Clovis does not publish a fixed yield rate in this guide. Vault performance depends on the strategies available to each Vault. The intended yield model can combine several sources: * assets allocated through supported lending and liquidity protocols on connected networks; * fees generated by cross-network transfers; and * other strategies approved for the relevant Vault. One source of Vault performance can come from Clovis users borrowing against their Earn positions. When users borrow, they pay interest on the borrowed asset. That interest can contribute to the performance of the relevant Vault. When these activities generate returns, the value represented by each `cloToken` can change through the Vault share price. Your `cloToken` balance does not need to increase for your position to earn. Not every Vault uses the same strategies. The app shows the available Vault information and current transaction details. ## Are Additional Rewards Guaranteed? No. Additional rewards are discretionary. The protocol determines whether and how they are distributed. Additional rewards are not guaranteed and should not be treated as a fixed part of Vault yield. ### Why Is My cloToken Balance Not One-to-One? The number of `cloToken` shares and the amount of underlying asset they represent are different values. #### Example 1: The Vault Generates Returns After You Supply For this simplified example, assume the Vault share price starts at 1 USDC. 1. You Supply 100 USDC. 2. You receive 100 `cloUSDC`. 3. The Vault generates returns and the share price increases to 1.05 USDC. 4. Your balance remains 100 `cloUSDC`. 5. Those shares now represent approximately 105 USDC. Your `cloUSDC` balance did not increase. The amount of USDC represented by each share increased. #### Example 2: You Supply After the Share Price Has Increased Now assume the Vault share price is already 1.05 USDC. 1. You Supply 100 USDC. 2. You receive approximately 95.24 `cloUSDC`. 3. Each `cloUSDC` represents 1.05 USDC. 4. Your 95.24 `cloUSDC` represents approximately 100 USDC at the time of Supply. Receiving fewer than 100 `cloUSDC` does not mean that part of your deposit was lost. You received fewer shares because each share was already worth more than 1 USDC. These examples exclude fees and rounding. Always check the estimated amounts shown by the app. ## What Can I Do With a cloToken? A Flexible `cloToken` position can be used to: * continue participating in the Vault; * create a Lock Position (Coming Soon); * provide collateral for an eligible Borrow market; or * Withdraw the underlying asset. Some actions are unavailable while the position is locked or being used as Borrow collateral. ### Can I Start Borrow With an Asset From My Wallet? Yes, when the app supports the asset and market. You can start with a supported asset from your wallet or use an existing eligible Earn position. When you start with an asset from your wallet, Clovis completes any required Earn step and uses the resulting eligible `cloToken` position as collateral during the Borrow flow. Follow the preparation and confirmation steps shown by the app. ### What Happens When I Create a Lock Position? {% hint style="info" %} **Coming soon:** Lock Positions are currently unavailable and will be introduced in a future update. {% endhint %} Lock moves your `cloToken` shares from Flexible into a Lock Position for the selected term. The position continues participating in the Vault while it is locked. Unlock or Early Exit returns the shares to Flexible. It does not directly return the underlying asset. To receive the underlying asset, return the shares to Flexible and then use Withdraw. ### What Happens When I Withdraw? Withdraw converts Flexible `cloToken` shares back into the underlying asset. A simplified calculation is: `underlying amount = cloToken shares × current Vault share price` For example, if you hold 100 `cloUSDC` and each share represents 1.05 USDC, the shares represent approximately 105 USDC before applicable fees and rounding. The app calculates the current amount and shows the estimated amount you will receive before you confirm. ### What Can Affect the Amount I Receive? The estimated underlying amount can change because of: * changes in the Vault share price; * Vault performance or losses; * applicable fees; * rounding; and * route or network costs for cross-network actions. Review the latest estimate in the app before signing. ### What Are the Risks? Vault returns are not guaranteed. The share price and the amount available when you Withdraw depend on Vault performance and the strategies used. Clovis Vaults also involve smart contract, strategy, liquidity, cross-network, and market risks. Read [Risks](/clovis/fees-limits-and-safety/risks.md) before supplying assets.