> For the complete documentation index, see [llms.txt](https://vayyl.gitbook.io/vayyl-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vayyl.gitbook.io/vayyl-docs/product/private-positions.md). # Private Positions Private positions apply the Vayyl note model to strategy-bearing financial state. A trader should be able to prove that a position is valid or healthy without publishing collateral, size, direction, or the complete update history. ## Planned lifecycle ```mermaid flowchart LR A[Private balance] -->|Open proof| B[Position commitment] B -->|Health proof| B B -->|Close proof| C[Private output notes] B -->|Invalid or expired health| D[Bound liquidation settlement] ``` ### Open The wallet consumes private notes and creates a position commitment. The circuit binds collateral, market parameters, owner authorization, and any public protocol fee. ### Attest A health proof establishes that a committed position satisfies the current collateral rule for an oracle input. It reveals the minimum public result needed by the contract, not the underlying position values. ### Close A close proof consumes the position commitment and creates new private notes representing the settled value. The output commitments return to the same wallet discovery system used by payments. ### Liquidate Liquidation cannot be a trusted offchain calculation. The proof and contract must bind the consumed position, oracle state, payout rule, liquidator reward, and resulting commitments. The current liquidation module requires this payout-binding redesign and adversarial testing before deployment. ## Why it belongs in Vayyl A private payment layer becomes more useful when users do not have to unshield before every financial action. Positions also create additional shielded activity, which can strengthen the shared privacy set when the actions use the same note system. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://vayyl.gitbook.io/vayyl-docs/product/private-positions.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.