# Vault {% hint style="info" %} **TLDR:** Vault locks T-SHARES, in the form of HEX. The reserve is at least 100%, but likely higher due to T-SHARES yield. {% endhint %} ## What is a Vault? Vaults are categorized by the type of collateral that can be added to mint **$HEX1**. A Hex One vault is characterized by accepting HEX. There is more than one vault that can mint $HEX1, and all are based on T-SHARES. In the current version, you can only deposit $HEX that is transformed into T-Shares. ## How do Vaults work? Users create $HEX1 by depositing Hex tokens that are transformed into T-Shares by the Hex One Protocol. To redeem the original Hex deposit, the borrower must repay the total borrowed $HEX1 tokens. ## What is collateral? Collateral are the T-shares, or staked HEX tokens, that go into the vault. --- # Agent Instructions: 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: ``` GET https://learn.hex1.club/hex-one-protocol/tokenomics/vault.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.