G12 Labs Litepaper

1. Executive Summary

Unique Value Proposition

G12 Labs offers the most complete exposure to DeFi through a single token. The crypto environment is undeniably expanding, with more major players entering the ecosystem. Yet, today, this same ecosystem remains complicated to access. Adding hacks, scams, and fraud, it feels like an adventure in the 19th-century Wild West.

G12 Labs is your gateway to this modern ecosystem with streamlined access to the best opportunities, directly on-chain, without intermediaries. DeFi, within reach of a token.

Objectives & Target Amount

G12 Labs operates on a Vault System. Different Vaults will be proposed so you can find the one matching your risk aversion. By creating G12 Labs, we want to make DeFi accessible to the greatest number. That is why we lowered the minimum entry amount to $1 USDC. A symbolic dollar, accessible by all, for all.

Performance Expectations

Performance cannot be guaranteed. We recommend forming an opinion by looking at the past performance of each Vault. Keep in mind that past performance does not guarantee future results.

Key Differentiators

2. Vision & Mission

Market Problem

DeFi represents unprecedented financial possibilities but remains inaccessible to the majority. Barriers are numerous: technical complexity, omnipresent security risks (hacks, rug pulls), lack of time to analyze opportunities, and a steep learning curve. Result: millions of potential investors stay on the sidelines.

The G12 Solution

G12 Labs democratizes DeFi access by offering a turnkey solution: professionally managed vaults, accessible from $1, fully on-chain and transparent. We are the bridge between decentralized finance and the investor, eliminating friction while preserving fundamental blockchain advantages.

3. Investment Strategy

Thematic Focus

G12 Labs deploys diversified strategies across different vaults, covering:

• Optimized Yield Farming: Automatic rotation to the best yield opportunities (e.g., stablecoins), combining protocol security and returns.
• Liquidity Pools: Exposure to trading fee revenues as Liquidity Providers.
• Blue-Chip Protocols: Positions on established protocols (Aave, Morpho, Uniswap).
• Emerging Opportunities: Controlled allocation to innovative protocols after rigorous due diligence.

Security remains our main focus. Combining new opportunities with risk management is our standard.

Asset Allocation & Vaults

bG12 Token - BTC Yield Vault (Ethereum)

Current Strategy: Balanced exposure to DeFi blue-chip protocols with dynamic risk management.

Target Allocation (Dynamic):

Note: Actual allocation varies based on market conditions and strategy optimization.

Active Positions (Example Snapshot)

Position data as of January 26, 2026:

Dynamic Risk Management

Our strategy employs intelligent position management to optimize returns while maintaining safety:

Automated Rebalancing Triggers

Positions are continuously monitored and adjusted based on:

• Price movement and volatility
• Fee generation efficiency
• Health factor thresholds
• Market regime detection (bull/bear/crab)

Protocol Selection Criteria

Before any allocation, a protocol passes our rigorous filter:

Currently Approved Protocols

• Uniswap V3 (DEX)
• Aave V3 (Lending)
• Additional protocols reviewed on ongoing basis

Rebalancing Strategy

We use a Hybrid Approach combining algorithmic monitoring with expert human validation. Working with algorithmic bots and AI is necessary, but must not replace decision making. The marriage of both—Human accompanied by modern tools—is the best approach.

Rebalancing Triggers

Rebalancing Frequency

• Continuous: Monitoring via automated systems
• As needed: Position adjustments (market-driven)
• Daily to weekly: Fee harvesting
• Multi-sig approval: Major rebalancing for material changes
• Monthly: Strategy review by team

Capital Preservation Priority

Our rebalancing philosophy prioritizes capital preservation over yield maximization:

Example Decision Flow

This systematic approach ensures consistent risk management while capturing yield opportunities.

4. Competitive Advantage

Experienced Team

Our team accumulates years of DeFi experience, having navigated multiple market cycles. This expertise allows us to identify opportunities while detecting red flags before they become problematic.

Systematic Approach

• Data-driven decisions: Algorithms analyze market conditions 24/7
• Human oversight: Critical decisions validated by experienced team
• Risk management: Automated alerts and circuit breakers

Total Alignment of Interests

We employ a "Skin in the game" model. The team holds significant positions in the vaults.

Team Commitment

• Management team is primary depositor in all vaults
• Long-term incentive alignment through token holdings
• No profit without investor profit

5. Architecture & Fees

Vault Architecture

G12 Labs operates via decentralized vaults on-chain built on Enzyme Finance infrastructure. Each vault emits its own ERC-20 tokens representing your proportional share.

Technology Stack

Mint & Burn Mechanism

Note: A 72h cooldown applies to withdrawals to allow optimized liquidation and prevent bank runs.

Fee Structure Detail

Fee Examples

6. Risk Management

Risk Hierarchy

Security Framework

Security is our absolute priority. We utilize Enzyme Finance infrastructure, a battle-tested asset management protocol operating since 2019 with $200M+ TVL and zero major exploits.

Smart Contract Risks

Protocol Risks

Due Diligence Process

• Only use audited protocols with active bug bounties
• Minimum 6 months operational history
• Minimum $100M TVL for major allocations
• Team and governance evaluation
• Economic analysis (tokenomics, sustainability)

Currently Whitelisted

• Uniswap V3 (DEX) — $4B+ TVL
• Aave V3 (Lending) — $10B+ TVL
• Additional protocols reviewed continuously

Liquidation & Leverage Risks

Leverage Management

• Accurate leverage tracking
• Continuous monitoring of health factors
• Automated alerts at multiple thresholds
• Emergency procedures for rapid deleveraging

Aave V3 Position Management

Uniswap V3 Specific Risks

Impermanent Loss Management

• Multiple range strategies reduce single-point risk
• Wide-range positions provide downside protection
• Tight-range positions maximize fees during stability
• Dynamic redeployment based on market conditions

Out-of-Range Management

• Automated detection when LP exits range
• Capital preservation priority:
  • If bearish: Consolidate to Aave collateral (boost health factor)
  • If bullish: Maintain positions or redeploy higher
  • If ranging: Adjust ranges to current price
• No forced positions in unfavorable ranges

Position Concentration

• No single LP position >50% of vault
• Multiple range widths deployed simultaneously
• Fee tier diversification (0.05%, 0.3%, 1%)

Liquidity Risks (72h Cooldown)

The 72h delay between withdrawal request and execution offers critical advantages:

• Optimized Liquidation: Time to dismantle positions without market impact (slippage)
• Collective Protection: Prevents bank runs and panic withdrawals
• Predictability: Allows the team to anticipate liquidity needs
• Fair Treatment: All withdrawals processed at optimal execution prices

Emergency Liquidity: Ability to liquidate positions within 24h if needed. Diversified positions for easier unwinding.

Market Risks

Volatility Management

• Portfolio volatility target: <50% annualized
• Dynamic position sizing based on market conditions
• Risk metrics monitored: Sharpe ratio, maximum drawdown, correlation

Concentration Risk

• Maximum 60% allocation to single protocol
• Maximum 50% allocation to single strategy
• Asset diversification (currently BTC, USDC focus)

7. Security Infrastructure

Multi-Layer Security Model

G12 Labs implements a defense-in-depth security strategy:

Security Audits

Incident Response Plan

Insurance & Backstops

Current Status

• Enzyme Finance has operated 5+ years without major exploits
• No formal insurance policy (DeFi insurance market immature)
• Team committed to transparent communication in case of issues

Future Plans

• Exploring Nexus Mutual coverage
• Building reserve fund from performance fees
• Partnership discussions with insurance protocols

8. Smart Contracts & Addresses

Key Integrated Protocols

• Uniswap V3 Router (Arbitrum)
• Aave V3 Pool (Arbitrum)
• Additional integrations via Enzyme adapters

Denomination Asset

9. Governance & Multi-Signature

Multi-Signature Configuration

Why 2-of-3?

• Security: Requires compromise of 2 wallets (not just 1)
• Redundancy: Can operate if 1 signer temporarily unavailable
• Best Practice: Standard configuration for small teams
• Flexibility: Balance between security and operational efficiency

Governance Scope

Decision-Making Process

Standard Operations

1. Strategy team proposes action
2. Multi-sig signatories review proposal
3. 2 signatures required to execute
4. Transaction executed on-chain
5. Community notification (if material)

Emergency Procedures

Transparency Commitments

10. Transparency & Verification

Don't trust, verify. Here is how you can check everything yourself:

How to Verify Everything

Real-Time Monitoring

Public Dashboards

• Enzyme Vault Interface — most comprehensive
• Etherscan — transaction history
• Safe Interface — governance actions

What You Can Track

• Every deposit and withdrawal
• Every rebalancing transaction
• Every protocol interaction
• Fee collections
• Share price evolution
• NAV (Net Asset Value)

Data Export

Available Data

• Historical transactions (CSV export via Etherscan)
• Performance metrics (API via Enzyme)
• Holdings evolution (snapshot via Enzyme)
• Fee calculations (on-chain data)

Community Verification

Open Review: All code is verifiable on-chain. Configuration is auditable by anyone. Community members can analyze strategies. Findings and suggestions welcome at info@g12labs.com

11. Legal & Disclaimer

Non-Custodial Service

G12 Labs operates a 100% non-custodial model:

• You keep total control of your funds
• Your funds remain in your wallet (via Vault Tokens)
• We never access your private keys
• We do NOT act as a custodian
• You can verify everything on-chain

What This Means: Your G12 tokens are ERC-20 tokens in YOUR wallet. You control when to redeem. Even if G12 Labs disappears, you own your vault shares.

Investment Risks

Key Risks

• Market Risk: Crypto prices are extremely volatile (+/- 50% or more in 24h)
• Smart Contract Risk: Bugs in smart contracts can lead to loss of funds
• Protocol Risk: Third-party protocols (Aave, Uniswap) could be exploited
• Liquidation Risk: Leveraged positions could be liquidated in market downturns
• Impermanent Loss: Liquidity provision can result in losses vs holding
• Regulatory Risk: Laws may change and affect DeFi operations
• Operational Risk: Human errors or system failures
• Liquidity Risk: May not be able to exit quickly (72h cooldown)

Risk Mitigation

• Blue-chip protocols only
• Multi-signature governance
• Moderate leverage (<2x)
• 24/7 monitoring
• Transparent operations

Important: Past performance is not indicative of future results.

Not Financial Advice

This document is for informational purposes only. It does not constitute:

• Investment advice
• Tax advice
• Legal advice
• Financial planning advice

Before Investing

• Do your own research (DYOR)
• Consult qualified professionals
• Only invest what you can afford to lose
• Understand the risks completely
• Verify all information independently

Jurisdiction & Access

Geographic Restrictions: G12 Labs services may not be available in certain jurisdictions due to local regulations. It is your responsibility to verify legality in your country.

No KYC Required: We do not collect personal information. Fully decentralized and permissionless. Responsibility on users to comply with local laws.

Service Terms

No Guarantees

• We do not guarantee any specific returns
• We do not guarantee uninterrupted service
• We do not guarantee error-free operations
• Smart contracts may contain bugs

Liability Limitation

• Use at your own risk
• We are not liable for losses
• No insurance or compensation guarantees
• Non-custodial = you bear the risk

Service Changes

• We may modify strategies
• We may add/remove protocols
• We may adjust fees (with notice)
• We may discontinue service

Contact & Support