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# Building Blocks

![](/docs/assets/products/Deck.png)

Steakhouse Financial's vault strategies are built from four building blocks: Repo, Term, Carry, and Looping. This page segments those strategies along three dimensions (liquidity, risk, and leverage) to show how each building block works and where it sits on the risk spectrum.

* **Liquidity**
  * Instant: deposits are available on-sight
  * Term: deposits are partially invested for a longer period
* **Risk**
  * Prime: solvency risk is mitigated through collateral selection
  * High Yield: higher solvency risk through higher-risk collateral
* **Leverage**
  * No leverage: 1x, i.e. gains and losses track linearly
  * Moderate leverage: 1-2x, i.e. some portion of the equity in a position is borrowed against to magnify gains and losses to a limited degree
  * High leverage: >2x, i.e. a significant portion of the equity in a position is borrowed against to magnify gains and losses to a large degree

From these dimensions, various strategies are possible:

* [**Repo**](/docs/products/stablecoin-products/blocks/repo) (overcollateralized lending)
  * Instant liquidity
  * Prime or High Yield risk
  * No Leverage
* [**Term**](/docs/products/stablecoin-products/blocks/term) (liquidity is locked for a period)
  * Term liquidity
  * Prime or High Yield
  * Any degree of leverage
* [**Carry**](/docs/products/stablecoin-products/blocks/carry) (borrow low lend high)
  * Term liquidity
  * Prime or High Yield
  * Typically No Leverage or Moderate Leverage
* [**Looping**](/docs/products/stablecoin-products/blocks/looping) (borrow low lend high with correlated assets)
  * Term liquidity
  * Prime or High Yield
  * Typically High Leverage

Many crypto strategies exist with complicated names (delta-neutral, basis trade, hedging, derivatives, etc) which mostly reduce to one or more of the above categories. For example, a basis trade strategy involving going long (buying) spot and going short (selling) a futures contract is a complicated form of Carry that bets on the 'lending rate' of the futures leg to be positive (depending on the market direction).