> For the complete documentation index, see [llms.txt](https://docs.dexponent.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dexponent.com/dtf-types/spot-dtfs.md).

# Spot DTFs

A Spot DTF lets a manager buy and sell supported spot assets using pooled capital. The DTF holds the assets it buys; this template does not itself turn those holdings into perpetual positions.

## How it works

LPs deposit the accepted base asset and receive shares. The manager executes supported trades and can adjust how much of the portfolio remains in the base asset. Share value reflects the resulting portfolio value after applicable costs and fees.

Use only the markets and order actions actually enabled in the app. A setting displayed in a creation form does not establish that every order type or venue is available.

## Example

An illustrative DTF starts with 10,000 USDC. The manager uses 4,000 USDC to buy an asset and keeps 6,000 USDC uninvested. If the purchased position falls to 3,600 USDC, total value is approximately 9,600 USDC before other costs. Holding some USDC reduces exposure but does not prevent losses.

## What to check

Review the manager's approach, supported holdings, concentration, trade history and available withdrawal liquidity. Thin liquidity and slippage can affect both trades and redemptions.

Read the [LP guide](/stakeholders-guide/liquidity-providers.md), [manager guide](/stakeholders-guide/farm-owners-guide.md) and [fees and costs](/fees-and-costs.md).