NAV & Pricing
Net Asset Value (NAV) Calculation
The NAV represents the fair value of each JVAULT token based on underlying vault assets.
Price Per Share Formula
NAV = (Total Assets - Total Liabilities) / JVAULT Token Supply
Where: Total Assets = USDC Reserve + Market-Making Position Value Total Liabilities = Pending Withdrawal Requests + Accrued Fees
Key Insight: NAV is Performance-Based
- Primary Factor: Vault's trading performance determines NAV
- Deposit Effect: More deposits = dilution (lower NAV per user)
- Withdrawal Effect: More withdrawals = concentration + fee retention
- Fee Burn: 0.25% withdrawal fee stays in vault, slightly boosting NAV
NAV Update Schedule
- Frequency: Every Sunday 07:00 UTC+7
- Process: Automated keeper system
- Duration: ~30 minutes for full settlement
- Public: All calculations transparent on-chain
Settlement Process & Withdrawal Impact
- Close Positions: Stop trading, calculate P&L
- Process Withdrawals: 0.25% fee stays in vault, tokens burned
- Update NAV: Reflects performance + withdrawal concentration effect
- Resume Trading: Deploy capital to market-making
Why Withdrawals Can Increase NAV:
Why Withdrawals Can Increase NAV
Large Withdrawal Week:
- Trading Performance: +2% (normal returns)
- Withdrawal Fee Retention: +0.25% (from 0.25% fees)
- Token Supply Reduction: Further concentrates value
- Combined NAV Effect: +2.1%+ for remaining holders
Example NAV Scenarios
Scenario 1: Profitable Week
Scenario 1: Profitable Week
Last Week:
- Users Deposited: $1,000,000 USDC
- JVAULT Minted: 997,500 tokens (minus 0.25% team fee)
- Starting NAV: $1.00
This Week (After Trading):
- Portfolio Value: $1,200,000 (+$200,000 profit from MM)
- JVAULT Supply: 1,000,000 tokens (unchanged)
- New NAV: $1,200,000 ÷ 1,000,000 = $1.20 per JVAULT
When User Withdraws:
- Withdrawal Price: $1.20/JVAULT (before fees)
- Fee: 0.25% on USDC amount (not on JVAULT)
- Token Burn: Withdrawn JVAULT tokens removed from supply
Scenario 2: Loss Week
Scenario 2: Loss Week
Same setup but Portfolio Value: $950,000 (lost $50,000)
- JVAULT Supply: 1,000,000 tokens (unchanged)
- New NAV: $950,000 ÷ 1,000,000 = $0.95 per JVAULT
Result: Users can withdraw at $0.95/JVAULT (before 0.25% fee)
Arbitrage Mechanisms
Premium Trading (NAV < Market Price)
- User deposits USDC at NAV price
- Receives JVAULT tokens
- Sells JVAULT on DEX at premium
- Profit = Market Price - NAV
Discount Trading (NAV > Market Price)
- User buys JVAULT on DEX at discount
- Requests withdrawal at NAV
- Receives USDC on Sunday
- Profit = NAV - Market Price
Price Discovery
The JVAULT token can trade on decentralized exchanges, but its value is anchored to NAV through:
- Deposit Arbitrage: Cheap JVAULT creation at NAV
- Withdrawal Arbitrage: Guaranteed redemption at NAV
- Weekly Settlement: Regular price updates
Risk Factors
⚠️ NAV Volatility: Can fluctuate based on market-making performance
⚠️ Timing Risk: NAV only updates weekly, market conditions may change
⚠️ Liquidity Risk: Large withdrawals may impact final NAV calculation
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