VERSION 1.0 JANUARY 2026

G12 Labs Litepaper

Institutional-grade DeFi exposure through a single token. A comprehensive guide to our vaults, strategies, and risk management framework.

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 are 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
  • Transparency: Everything is on-chain. Every transaction is traceable. Nothing can be hidden.
  • Accessibility: An EVM wallet and $1 is all you need to join.
  • Precision: No opaque changes. Each vault has its own rules decided before launch.
  • Honesty: We earn mostly on performance. We win together, we lose together. No profit = No performance fees.

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.

Long-term Vision

To become the reference for passive DeFi management, where every investor—regardless of expertise or capital—can access the market's best strategies with confidence. Our ambition: make G12 Labs the standard of excellence for transparency, performance, and accessibility.

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

  • Conservative Vault: Focus on established protocols, stable expected performance without large variations.
  • Balanced Vault: Mix between security and emerging opportunities. Aimed at exposing capital to more complex DeFi strategies.
  • Aggressive Vault: High performance strategies accompanied by higher risk. Reserved for experienced profiles.

Protocol Selection Criteria

Before any allocation, a protocol passes our rigorous filter:

Technical Security
Multiple audits by recognized firms.
Economic Viability
Significant TVL and at least 6 months of operational history. Analysis of tokenomics.
Team & Governance
Evaluation of the team and governance structure.

Rebalancing Strategy

We use a Hybrid Approach. 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 based on analysis to optimize yield.
  • Exit if a protocol presents warning signals.
  • Rotation to new opportunities via quantitative analysis.
  • Automatic collection and compounding of rewards.

4. Competitive Advantage

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.

24/7 Monitoring
Bots & AI
+
Validation
Human Expert
=
Execution
Safe & Optimal

Total Alignment of Interests

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

  • Management Fee (1%): Covers essential fixed costs to guarantee project longevity.
  • Performance Fee: Remuneration based on NET profits. We only win if you win.
  • High-Water Mark: In case of loss, no fees until the previous level is recovered.

5. Architecture & Fees

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

  • G12 Token: DeFi Yield Vault (Arbitrum)
  • xG12 Token: Stable Yield Vault (Base)

Mint & Burn Mechanism

Deposit (Mint): Connect wallet -> Select Vault -> Deposit USDC -> Receive Tokens calculated on NAV.

Withdraw (Burn): Initiate withdrawal -> Tokens burned -> Receive share of assets + gains.

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

Fee Structure Detail

Fee Type G12 Labs Traditional Funds
Management Fees 1% / year 2% - 3%
Protocol Fees 0.25% / year Hidden
Performance Fees 20% (High-Water Mark) 20% - 30%
Entry Fee 0% 0% - 2%
Exit Fee 0.2% * 1% - 3%
Transparency 100% On-Chain Limited / Opaque

*Exit fees (0.2%) are redistributed back into the vault to benefit long-term holders and cover rebalancing costs. They protect against short-term arbitrage.

6. Risk Management

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

  • Enzyme Infrastructure: Audited by ChainSecurity, OpenZeppelin, Trail of Bits.
  • Our Vaults: Parameters verified before launch. Multi-sig validation for critical actions.

Protocol Risks

  • Due Diligence: We only use audited protocols with active bug bounties.
  • Economic Health: We avoid protocols with < 6 months history or overly inflationary tokenomics.

Liquidity Risks (72h Cooldown)

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

  • Optimized Liquidation: Time to dismantle positions without market impact (slippage).
  • Collective Protection: Prevents bank runs.
  • Predictability: Allows the team to anticipate liquidity needs.
Risk Philosophy "Security is never absolute in DeFi, but we prioritize it above short-term yield. A secure 12% yield is infinitely better than a risky 30%. We prefer to sleep well, and so should you."