# NAV & accounting **NAV** (net asset value) is the total USD value of everything a vault holds. The **share price** is NAV divided by the total supply of [vault shares](/concepts/vault-tokens.md). Every time NAV changes, share price changes; every time shares are minted or burned, they're minted or burned at the current share price. ## How NAV is calculated Canonically, NAV is **the vault's assets minus its liabilities**, and share price is NAV divided by total shares outstanding. In practice, Chamber's vaults mostly hold spot assets and yield positions — liabilities only matter on leveraged vaults (Aave, Compound, MAI, etc.) where the vault has borrowed against collateral. In those cases the asset guard for that position reports **net** value (collateral − debt), so NAV always reflects real ownership. The contract evaluates NAV by: 1. **Enumerate holdings.** Every asset and position the vault holds, across every protocol it's integrated with. 2. **Price each holding in USD.** Using the [oracle layer](/concepts/oracles.md) — Chainlink, Pyth, and TWAP feeds, selected per asset at the protocol level. Leveraged positions are priced net of debt inside their asset guard. 3. **Sum.** The total is the vault's NAV. 4. **Accrued manager fees mint as shares.** Performance and management fees accrued since the last mint are realised on the next deposit, withdrawal, or manual trigger — new shares go to the manager and the Chamber protocol. NAV itself is unchanged by this; share price takes the hit via dilution. All of this happens onchain. No off-chain accounting; no manual valuation. The contract reads from oracles and protocol adaptors, sums, reports. ## How share price is calculated ``` share price = NAV / total supply of shares ``` At launch, vaults typically start with a 1:1 ratio of USD per share (e.g. the first depositor of $10,000 receives 10,000 shares at $1 each). As the vault gains or loses value, NAV changes while share count stays fixed — so share price moves. The ratio depositors see is the share's real economic value at that moment, priced in USD. ## What affects NAV * **Manager trades.** Swaps, LP entries, lending deposits, leveraged positions — every trade changes what the vault holds, and NAV reflects the new holdings at current prices. * **Price movements.** Even with no trading, NAV moves as the value of held assets changes. A vault 100% in ETH fluctuates with the ETH price. * **Yield accrual.** Lending positions (Aave, Compound) and yield-bearing tokens (staked assets, Pendle positions) earn yield continuously. NAV rises as yield accrues. * **Fee accrual.** The amounts owed for management and performance fees scale per second (mgmt) and with share-price growth above the HWM (perf) — the contract can compute them at any moment. Shares are actually minted on the next deposit, withdrawal, or manual trigger. When they mint, total share count rises and each existing share represents a slightly smaller slice of the same NAV — the fee is paid via socialised dilution, not a NAV deduction. * **Deposits and withdrawals.** NAV rises on deposit, falls on withdrawal. Share count rises or falls in matching proportion, so share price stays roughly constant through the deposit/withdraw itself. ## What depositors see On your vault page: * **Share balance.** How many shares you own. Usually flat — only changes on deposit or withdrawal. * **USD value.** Your share balance × current share price. Rises and falls with the vault. * **Performance chart.** NAV over time (or share price over time, depending on view). Tells you how the vault has done, not your specific entry. * **Your unrealised P\&L.** (USD value now) − (deposit cost basis). Visible in the app. ## Why NAV might seem to "jump" Most of the time NAV updates smoothly. Three things can cause visible jumps: * **An oracle price update on a large holding.** If ETH moves 2% in a block and the vault is 50% in ETH, NAV jumps \~1% when the oracle updates. * **A new position being entered or exited.** Gas costs, slippage, and swap fees create a small, real loss on every trade. Busy managers will show many small dips; quieter vaults show fewer, larger steps. * **Fee accrual crystallising.** Performance fees mint in chunks when the vault crosses a high-water mark. The mint shows up as a small downward nudge in share price (more shares, same NAV) — but it's just the fee being taken, not a loss. If you see a large unexplained move, check [trading history](/deposit/find-a-vault.md#the-vault-page) on the vault page. Every position change is onchain and visible. ## Related * [Oracles](/concepts/oracles.md) — the source of prices used in NAV calculation. * [Vault tokens & mechanics](/concepts/vault-tokens.md) — how shares mint, burn, and transfer. * [Denomination asset](/manage/denomination-asset.md) — why USD and not something else. * [Fees & performance](/manage/fees-performance.md) — how fee accrual affects share price. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.chamberfi.com/concepts/nav-accounting.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.