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

# What Happened: The Vault Strategy

This page explains the Midas and Re7 Labs strategy, what happened to it, and what that means for your redemption, in detail, for anyone who wants the full picture beyond the Vault Transition FAQs.

### Who was responsible for the strategy?

The strategy was selected and signed by the **Acre Security Council** through its governance and risk assessment process. **Re7 Labs** acted as risk manager, responsible for the strategy's positioning and risk parameters in accordance with the deployment guidelines. **Midas** provided third-party infrastructure for accounting and withdrawals.

Acre Protocol's own role was the deposit and redemption system and the integration with the strategy. As of this writing, Acre is still integrated with the Midas vault for infrastructure and redemptions.

### What happened?

The strategy did not perform as expected. Its value was marked down twice, first on May 11 and again on June 11, 2026, and the vault's share price fell from 1.00018887 to 0.98762313 tBTC per acreBTC, where it stands today.

The decision was made to remove funds from the strategy, return them to the allocator vault, and sell the infrastructure. That was a risk-off decision taken during a market downturn: it prevented further losses, and it also closed off any opportunity for future gains from that position.

Across the portfolio, the share price is 1.24% below where it started. Depending on when you deposited, your own position is down between 1.14% and 1.26%.

For the exact math on what this means for your specific balance, see Understanding Your Redemption Rate.

### Was anything done to offset the loss?

One specific gap was covered. It's worth being precise about what it was and what it was not.

On May 8, 2026, twenty-one redemption requests settled at a share price of 1.00018887. Three days later, on May 11, that price was corrected down to 0.99093701. Those twenty-one redeemers had already been paid at the higher price, which left the vault short by 0.19373532 tBTC. That shortfall would otherwise have been carried by everyone who stayed.

On June 1, 2026, the amount was returned to the vault: 0.19380000 tBTC, in two transfers. No new shares were issued against it, so the full amount went to the holders at that time — 68 addresses, in proportion to what each held, worth 0.00345569 tBTC per share.

**This covered the pricing gap only.** It did not offset the strategy losses themselves, which remain reflected in the current share price.

### Will depositors be compensated for the loss?

No. The loss is reflected in the share price and applies to every share equally, the same rate for everyone, regardless of when you deposited or when you redeem. Redeeming sooner or later does not change what you receive. Your amount is set when you submit your redemption request.

The one payment made back into the vault, described above, corrected a specific pricing error on redemptions settled May 8, 2026. It was not compensation for the strategy loss, and no further payments are planned.

### Learn more

* [Understanding Your Redemption Rate](/start-here-acrebtc-vault-transition/understanding-your-redemption-rate.md) to calculate what you'll receive
* [Vault Transition FAQs](/start-here-acrebtc-vault-transition/acrebtc-vault-transition-and-wind-down-faqs.md) for shorter answers to common questions
* Technical background on how the strategy was built: macreBTC1 Architecture *(Historical Reference)*