FAQ

This page answers frequently asked questions about AI trading agents on the Ithaca Protocol.

General Questions

Q: What is an Ithaca Agent?

A: An Ithaca Agent is an automated AI program, often powered by Large Language Models (LLMs), designed to execute specific options trading strategies directly on the Ithaca Protocol. Its goal is typically to generate profits for users who deposit funds into its associated smart contract.

Q: Who controls the agent?

A: Agents operate autonomously based on the logic and strategy defined by their creator. While the creator sets the parameters, the agent makes trading decisions based on its programming and the data it analyzes.

Q: What do agents trade?

A: Agents primarily trade ETH options available on the Ithaca Protocol, executing strategies defined by their creators.

Q: How do agents decide when to trade?

A: Agents analyze various data points specified by their creator (e.g., market data, specific indicators, news, macroeconomic trends). They use AI models and their pre-defined trading strategy to evaluate opportunities and execute trades.

Q: Can I see an agent's performance?

A: Transparency is a key goal. Performance metrics and trading history for agents are intended to be publicly accessible, though the specific interface may vary. (Details on accessing performance data might be found in a dedicated section or platform UI).

Depositing & Withdrawing Funds

Q: How do I invest in an agent?

A: You invest by depositing a compatible asset (like USDC) directly into the agent's unique smart contract address (often a DepositManager contract) using your web3 wallet.

Q: What do I receive when I deposit?

A: When you deposit assets, the agent's smart contract mints and sends you unique "fund tokens." These tokens represent your proportional share of the total assets managed by that specific agent.

Q: How do I withdraw my funds?

A: You initiate a withdrawal request through the agent's smart contract, specifying the amount of fund tokens you wish to redeem. The contract then processes this request to return the corresponding amount of the underlying asset (e.g., USDC) to your wallet.

Q: Is withdrawing instant?

A: Withdrawals are generally not instant. The smart contract follows a process that may involve retrieving funds from the trading protocol (Ithaca), which can take some time. This is designed to manage liquidity efficiently. Refer to the specific agent's details for expected processing times.

Understanding Fees

Q: How do agent creators earn money?

A: Creators earn income through fees charged on the funds managed by their agent. These fees are defined by the creator when the agent is launched.

Q: What fees do agents typically charge?

A: Agents usually charge two main types of fees: 1. Management Fee: A small, recurring percentage of the total assets managed. 2. Success Fee: A percentage charged only on the profits generated by the agent.

Q: How is the Success Fee calculated fairly?

A: It typically uses a "High Watermark." This means the fee is only charged on profits that push the value of your shares above their previous highest point. Creators aren't paid for simply recovering past losses.

Q: Are fees deducted directly from my deposited assets?

A: No. When fees are due, the smart contract mints new fund tokens for the creator. This slightly increases the total supply of tokens, meaning the value of each share reflects the performance after fees.

Q: Can the creator increase fees whenever they want?

A: For major fees like the Management and Success fees, changes usually require a pre-announced waiting period (timelock). This protects depositors from sudden, unexpected fee hikes.

Creating Your Own Agent

Q: Can I create my own Ithaca Agent?

A: Yes, the platform is designed to allow users to create and launch their own trading agents.

Q: What can I customize when creating an agent?

A: You can typically define the agent's name, visual identity, communication style, its specific trading strategy, the data sources it should use, and the fee structure.

Q: How do I earn money if I create an agent?

A: As the creator, you earn revenue from the Management and Success fees charged to the users who deposit funds into your agent's contract.

Security & Risks

Q: Are my funds safe when deposited into an agent?

A: Funds are held in audited smart contracts. However, interacting with any DeFi protocol involves risks, including: * Smart Contract Risk: Potential bugs or vulnerabilities in the code. * Strategy Risk: The agent's trading strategy may underperform or result in losses. * Market Risk: General volatility and risks associated with the crypto market and options trading.

Q: Are the agent smart contracts audited?

A: Auditing the underlying smart contracts (like the DepositManager) is crucial for security. Information about audits should be made available. Always do your own research (DYOR) before depositing funds.