Earn uses a Loyal Smart Account so your funds can be controlled by rules instead of by a single always-powerful key. You still approve the important actions from your Main Account, but the assets used by Earn sit in a separate smart-account vault.
The practical mental model is simple: your Main Account approves; your Earn vault holds and executes.
The Three Addresses
| Address | What it means | Why it matters |
|---|
| Main Account | The wallet you connect to Loyal | You sign setup and approve deposits, withdrawals, or revocation from here |
| Smart Account settings | The configuration root | It stores signer and policy configuration; it is not where funds should be sent |
| Earn vault | The derived smart-account address for Earn | This is the vault that holds Earn USDC and executes approved Earn actions |
In the current implementation, Earn uses smart-account vault index 1. The primary smart-account vault is a different address.
Deposits
When you deposit, Loyal prepares a transaction that moves USDC from your Main Account into the Earn vault and deposits it into the selected Kamino USDC reserve.
The first Earn deposit may also create the policy accounts needed for future Earn actions. Later top-ups can reuse the active policy instead of creating it again.
Withdrawals
When you withdraw, Loyal prepares the reverse path from the active Earn position back toward your wallet. A partial withdrawal can leave the Earn setup active. A full exit can also clean up idle USDC, close Earn-specific policy state, and revoke Autodeposit authority if Autodeposit is active.
Live Balances
The app treats Solana RPC as the current truth for live Earn holdings. It checks the Earn vault USDC account and the Kamino obligation accounts that represent the current lending position.
Loyal’s database stores confirmed history, coordination state, and snapshots. It should help explain what happened, but it is not the authority for your live balance. 
