> For the complete documentation index, see [llms.txt](https://docs.elara.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.elara.fi/start-here/faq.md).

# FAQ

## What exactly is Elara?

A managed yield product from the Brila ecosystem. Deposit stablecoins → get ELUSD → stake for sELUSD if you want returns. Capital goes into concentrated liquidity on stablecoin pairs, not token farming.

## Is ELUSD a stablecoin?

No. It's dollar-referenced and targets a stable value, but there are no fiat reserves in a bank backing it and no government guarantee.

## What kind of returns?

Target is low-to-mid teens annualized. Not guaranteed, as performance moves with market conditions and execution quality.

## What happens if the strategy loses money?

Strategy and NAV losses are borne by sELUSD holders. There is no reserve fund and no junior tranche behind them. Holders of unstaked ELUSD do not earn, and in normal conditions they are not affected by NAV movement. That protection is not unlimited: losses are absorbed by burning ELUSD from the staking pool, and once cumulative losses exceed the yield earned to date there is nothing left to burn, so the loss reaches the backing for unstaked ELUSD. See [Risk Management](https://docs.elara.fi/risk-and-security/risk-management).

## How fast can I get my money out?

Instantly if your request fits within the liquidity buffer, which targets around 10% of system assets. Larger redemptions are typically processed within about 24 hours, giving execution partners time to unwind positions without slippage.

If the buffer is exhausted, your redemption is queued on-chain against a redemption ID and settled once treasury liquidity is available. Settlement is executed by an authorised role rather than by the holder. The buffer target and processing window are operational targets, not contract-enforced guarantees.

## Can I sell ELUSD instead of redeeming it?

Not today. There is currently no external DEX liquidity for ELUSD or sELUSD, so redemption through Elara is the operative exit. External venue liquidity will be established as the protocol grows.

## Has it been audited?

Elara's core contracts have completed a security audit through Sherlock. The scope covered all core contracts: Vault, ElUSD, sElUSD, ElUSDStake, PriceOracle, TreasuryAdapter, and TokenRegistry. More detailed information is available in the [Audit Status](/risk-and-security/audit.md).

## Who is Arken?

The first execution partner. They run concentrated liquidity strategies on stablecoin pairs. ArkenYield is currently a private corporation and is in the process of pursuing a public listing through a transaction involving a CSE-listed company, which is unusual for this role in DeFi. We believe it will add transparency. More partners can be added over time.

## What are the fees?

Currently none. Elara and Arken have both waived management and performance fees as a joint growth measure. The contracts carry the fee mechanism, and any contract-level amounts are retained or recycled within the system rather than paid out as revenue.

Fees will return once the fee model is reworked. Current yields are therefore gross of fees that will eventually apply, which is worth factoring into any comparison. The APY and APR displayed on the front end are always net of fees actually applied.

## Can I use Elara?

Minting and redeeming are currently permissionless at the contract level. However, Elara is not available to U.S., UK, EU/EEA or Singapore persons, or to anyone in a jurisdiction where access would be prohibited or restricted. Acceptance of the Terms of Service includes a representation that you are not a Restricted Person.