# Vault vs Strategy

You might be confused by all the different terms on Krystal:

* A **Liquidity Position** is a single position on a DEX (e.g., Uniswap V3), typically represented by an NFT issued by the protocol.
* A **Liquidity Strategy** is a managed approach to a specific trading pair, composed of one or a series of positions that are periodically rebalanced. Strategies could include automation tools like auto-rebalance, auto-exit, and fee compounding.
* A **Liquidity** **Vault** takes this further—it can hold **multiple Liquidity Strategies** across different pools and tokens. This allows users to build and share more **customized, advanced strategies** under a single, smart-contract-governed framework.

**Vault = Strategy + Automation + Community Sharing**

Vaults are not just a technical upgrade—they’re a shift in how liquidity farming is experienced on Krystal: **simpler, smarter, and scalable.**

### When to use a Vault?

Some of the Vault's benefits are listed at [What is A Liquidity Vault](/products/vaults/what-is-liquidity-vault.md#why-use-a-vault)

Technically Vault can cover whatever Strategy can, with improved management capabilities. However, Vault does have a different pricing model and a different list of supported chains, some might still be comfortable with Strategy. 

Following is a deeper comparison between Vault & Strategy

<table><thead><tr><th width="178.8660888671875">Feature / Aspects</th><th width="230.9781494140625">Strategy</th><th>Vault</th></tr></thead><tbody><tr><td>Holding Asset</td><td>LP Token</td><td>Vault Token</td></tr><tr><td>Accessibility</td><td>Self-managed with Zap and Automation tools</td><td><strong>Participants</strong>: Deposit, withdraw, earn.<br><strong>Vault Onwer</strong>: manages the fund with Zap and Automation tools.</td></tr><tr><td>Sharing</td><td>Copy strategies</td><td>Publish and monetize</td></tr><tr><td>Reward</td><td>LP fees<br>3rd-party farming rewards</td><td>LP fees<br>Integrated farming rewards (.e.g Merkl)<br>Revenue sharing for Vault Owner</td></tr><tr><td>Risk Mitigation</td><td>Self-managed</td><td>Vault risk levels &#x26; rules enforced</td></tr><tr><td>Chain/Protocol Support</td><td>Wider chains and protocols support</td><td>To be expanded gradually </td></tr><tr><td>Fee model</td><td>Fixed Zap and Automation Fees</td><td>Performance fees from generated rewards</td></tr><tr><td>Best-fit for</td><td>Simple strategy with a few liquidity positions<br>Low management effort (little rebalance/reallocate) </td><td><p>Multiple complex LP strategies</p><p>High management effort, regularly reallocates funds between different LPs. <br></p></td></tr></tbody></table>

### Migrate from Strategy to Vault

To migrate, click the `Migrate to Vault` button on the strategy detail page, and follow the steps.

<figure><img src="/files/RTCaXohyDeDvOOMy6zzx" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/q3FqQPDCxmTxjtAajTa8" alt="" width="437"><figcaption></figcaption></figure>


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