Every coin funds its own loans.

launch  → pump.fun's fee-sharing config names the coin's vault as a shareholder
trade   → every buy and sell pays creator fees on pump.fun
fees    → distributed on chain every few minutes; the vault's share lands in it
borrow  → a holder deposits THIS coin and receives SOL from THIS vault
repay   → exactly the borrowed SOL returns to the same vault; tokens return to the holder

Vaults never share SOL. A coin's fees can only be lent against that coin, so a crash in one coin can never drain another coin's vault. Nothing about the coin itself changes: it trades on its bonding curve and, after graduation, on PumpSwap, exactly like any pump.fun coin.

1. 1

   Describe the coin

   Name, ticker, image and optional links. The metadata is pinned to IPFS through pump.fun.
2. 2

   Pick the vault share

   Between 10% and 100% of creator fees go to the coin's vault (default 50%). The rest is yours. A bigger share means a bigger vault and more your holders can borrow.
3. 3

   Sign once

   Your wallet signs the create transaction, the fee-sharing transaction (which also sends 0.005 SOL to open the vault on chain) and an optional first buy, all in one approval.
4. 4

   Lending opens

   The server reads the fee-sharing config back from pump.fun. Only when it names this exact vault at the agreed share does the coin page open borrowing.

Launch a coin

1. 1

   Find the coin

   Open a coin page or pick from your holdings on Vaults. Only coins launched here can be borrowed against.
2. 2

   Choose an amount

   Pick how many tokens to deposit and a loan-to-value up to 50%. The quote reads the market fresh every time.
3. 3

   Sign

   One transaction moves your tokens into the coin vault and the vault’s SOL to you. Neither half can land without the other.
4. 4

   Repay any time

   There is no interest and no deadline. Repaying sends exactly the SOL you borrowed back to the same vault and returns your exact tokens in one transaction.

Each coin vault is a separate Solana wallet derived from the coin's mint. At launch, pump.fun's own fee-sharing program records two shareholders: the launcher and the vault. pump.fun then treats the fee-sharing config as the coin's creator, so every creator fee flows through it.

Fees accrue at pump.fun until someone calls distribute_creator_fees. That instruction is permissionless; banked calls it every few minutes once enough has built up, pays the gas, and records the exact SOL that landed in the vault from the transaction itself.

Since 30 September, Pool::virtual_quote_reserves on PumpSwap pools is a signed i128 and can be negative. Every buy and sell is priced against the effective quote reserves:

effective_quote_reserves = pool_quote_token_account.amount + Pool::virtual_quote_reserves

banked decodes the pool account directly on every read, keeps the sign, and reads pools written before the field existed as 0. Coins still on their bonding curve are priced against the curve's virtual SOL, and only its real SOL can ever be paid out.

The whole deposit is priced as one sell, after the coin's largest holders have sold first:

// stress: the 20 largest holders (minus the pool and your deposit) dump first
quote'  = quote - sell(ahead)
base'   = base + ahead

gross   = deposit * quote' / (base' + deposit)
gross   = min(gross, sellable SOL)
value   = gross * (1 - sell fee)

The stress step stops a whale from depositing part of a bag, borrowing against today's price, and dumping the rest. Large deposits in thin markets are worth less per token, exactly as they would be if you sold.

Maximum loan-to-value

50%

Liquidation threshold

75%

Interest

None — repay exactly what you borrowed

Term

Open-ended, repay whenever you like

Loan size

0.01 SOL – 25 SOL

Share of a vault per loan

50% of its free SOL

Per-coin cap

10% of the coin's sellable SOL, all loans

Open loans per wallet

3

Minimum market

2 SOL sellable

Sell fee in valuation

2% curve · 1.25% PumpSwap

Liquidation penalty

None — surplus is refunded

Vault fee share

10% – 100%, set at launch

1. 1

   Quote

   The server reads the market and the coin’s largest holders, values the deposit, and caps the loan by LTV, vault balance, per-coin exposure and size limits.
2. 2

   Prepare

   It builds one transaction — your tokens to the coin vault, the vault’s SOL to you — and the vault signs it first so wallets can’t rewrite it.
3. 3

   Sign

   Your wallet signs. The transaction still can’t land: it also needs a server gate signature.
4. 4

   Submit

   The server checks the bytes are exactly what it built, re-quotes the loan against the market right now, and only then adds the gate signature and relays it.
5. 5

   Repay

   Same pattern in reverse: the borrowed SOL back to the same vault, exact tokens back to you, in one transaction.

Every open loan is re-valued every five minutes and whenever its owner opens My loans. When the debt reaches 75% of the collateral's value, the vault sells the collateral into the coin's own market — the bonding curve or the PumpSwap pool — with a slippage limit.

The vault keeps only the SOL it lent — no penalty, no fee — and sends everything above that back to the borrower, once. A loan with a repayment already signed and in flight is not liquidated.

Attack

Defence

Broadcast a vault-signed borrow yourself

Needs a gate signature only the server adds after re-checking

Sign at an old price

Re-quoted at submit; refused if the price or vault moved

Borrow, then dump the rest of your bag

Largest holders are assumed to sell first

Drain a vault with one loan

Each loan takes at most 50% of free SOL

Race two borrows at once

In-flight loans are subtracted from the vault

Swap in different instructions

Signed bytes must equal the stored message

Freeze, fee or hook tokens

Mints with freeze authority or Token-2022 traps are refused

Fake a fee share at launch

Lending opens only after the on-chain config is read back

• Meme coins move fast. A loan can be liquidated between checks, and the sale can fill below the threshold.
• The launcher stays the fee-sharing admin on pump.fun and could later change the split. Lending is re-checked against the on-chain config.
• If pump.fun changes its programs, loans may pause while pricing and liquidation are updated.

pump.fun bonding curve

6EF8rrecthR5Dkzon8Nwu78hRvfCKubJ14M5uBEwF6P

PumpSwap

pAMMBay6oceH9fJKBRHGP5D4bD4sWpmSwMn52FMfXEA

pump.fun fee sharing

pfeeUxB6jkeY1Hxd7CsFCAjcbHA9rWtchMGdZ6VojVZ

Memo (gate signer)

MemoSq4gqABAXKb96qnH8TysNcWxMyWCqXgDLGmfcHr