# VLP key features

1. Minting and Redemption: VLP can be minted using any index asset and burnt to redeem any index asset. The price for minting and redemption is calculated based on the index value (total value of assets in the index, including profits and losses of open positions) divided by the VLP supply.
2. Fees for buying VLP vary based on the individual assets' over- or underweighting. It is advised to compare fees in order to minimise fee expenses.
3. Auto-Compounding\
   Holders of the VLP token earn 50% of platform trading fees in VLP and esVDX in staking page.

   \
   After acquiring VLP, your tokens will be automatically staked, and you will begin earning VLP and Escrowed VDX. Every accrued VLP reward will be automatically staked in order to achieve auto-compounding until you decide to cash out in the desired asset (swap from VLP).


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