The cbBTC Carry vault is live on the Steakhouse App. The vault borrows USDC against cbBTC collateral and deploys into higher-yielding USDC strategies. Carry accrues in USDC terms when strategy yield exceeds borrow cost, then settles as BTC-denominated returns.

The position is structurally long cbBTC while extracting carry from USDC rate differentials.

Two separate risk dimensions to understand: Carry risk: borrow costs on USDC are variable. When borrow rates rise above strategy yield, carry turns negative and erodes returns for as long as the inversion persists. Collateral risk: if cbBTC price drops significantly, the position approaches its liquidation threshold. Forced exits near liquidation introduce slippage that compounds losses beyond the carry itself. These risks operate independently. Carry can be positive while collateral risk is elevated, and vice versa

Intended holding period is 30+ days. Shorter durations risk entry and exit slippage diluting returns. The vault uses Steakhouse Box custom adapters to extend noncustodial Morpho v2 mechanics beyond standard borrow-lend. Vault parameters and risk rating visible in the app. Use of leverage means vault users face meaningful risk of losses.