> For the complete documentation index, see [llms.txt](https://defishards.gitbook.io/defishards-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://defishards.gitbook.io/defishards-whitepaper/protocol-mechanics/vault.md).

# Vault

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Every DeFiShard NFT is associated with a unique vault, a smart contract designed to securely hold fungible tokens.

For each user, the typical process for minting a DeFiShard NFT involves the following steps:

<figure><img src="/files/WEViUsbFdXkrPxDF4DIU" alt="" width="375"><figcaption></figcaption></figure>

**Note:** During the above transaction, apart from the actual minting price, a flat fee of 2 NEAR is applied, which is fully redeemable when the NFT is listed or burned. This specifies the true ownership of the user's assets.&#x20;

The amount is set by default by the blockchain itself to secure the vault allocated to each user as part of deploying a single contract, preventing any kind of direct external attack.

Once the transaction is confirmed, the vault is automatically created, and the NFT is forged with a defined amount of tokens. This process ensures that each DefiShard NFT contains fungible tokens inside its associated vault, providing secure and efficient asset management.

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