Basics
Vault shares, NAV and exchange rates
A rising share price is a result, not a promise. Fees and losses move it too.
- 01Assets in vault
- 02Shares outstanding
- 03Exchange rate
- 04Fees and losses
The rate is a ratio
A vault share’s exchange rate is assets attributable to the vault divided by shares, after the accounting the contract actually uses. A rising rate can mean interest. It can also mean an incentive token marked inside the vault, a stale price, or a fee that has not been taken yet.
NAV is not a promise
Private-market NAV and an on-chain exchange rate are different objects. One is governed by fund documents and valuation policy. The other is whatever the contracts and oracles report. Neither predicts the next period.
Read both directions
Losses reduce the rate. A donation attack, a bad rounding path or an unaccounted fee can move it without any ‘yield’. If the methodology is not stated, treat the number as unknown.
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