NAV & Accounting

This page is the authoritative description of desk accounting. The rules here are enforced by NavLib on-chain and mirrored by @seat/sdk off-chain.

#Units and decimals

Raw vs UI balances. Stock Tokens expose balanceOfUI(address) (ERC-8056), the authoritative supported-balance interface. The vault's valuation path is: try balanceOfUI → fall back to balanceOf → fall back to 0 (only if both calls fail). The SDK's Position.uiBalance is the same quantity. Display formatting (formatUsdg) happens only at the edges; internally everything is integer base units.

#The formulas

positionValue = uiBalance × price × 10^6 / (10^tokenDecimals × 10^priceDecimals)
grossEquity   = cashUsdg + Σ positionValue
equity        = grossEquity − feeLiabilitiesUsdg          (floored at 0)
navPerShare   = equity × 10^6 / totalShares               (0 when no shares)

DeskVault.totalAssetsUsdg() goes one step further and subtracts pending (not yet booked) fees — an estimate of the AUM accrual since lastFeeTs plus any performance fee that would charge at the current NAV — so external reads are never ahead of liabilities.

#When valuation runs (and reverts)

Position values are needed by deposit, redeem, executeCopy, and the totalAssetsUsdg/navPerShare views. Any of these reverts when:

• the desk holds a position but has no oracle set (MissingOracle),
• the oracle returns a zero price (NavLib.ZeroPrice),
• the price timestamp is in the future or older than maxStalenessSec (default 120 s) (StalePrice).

A cash-only desk (the current testnet state) never touches the oracle: with no held tokens, NAV is exactly cashUsdg − liabilities.

#Fee liabilities

feeLiabilitiesUsdg accumulates two charges at every state transition (see Fees):

• AUM: equity × 200 bps × elapsed / (10_000 × 365 days)
• Performance: 10% of (navPerShare − highWaterNavPerShare) × totalShares / 10^6 when NAV/share exceeds the high-water mark

Liabilities are paid out of cash when possible; until paid they reduce equity.

#Reading NAV off-chain

import { calculateNav, navPerShare, formatUsdg } from "@seat/sdk";

const nav = calculateNav(cashUsdg, positions, {
  now: Math.floor(Date.now() / 1000),
  maxStalenessSec: 120,
  liabilities: feeLiabilitiesUsdg,
});
console.log(formatUsdg(nav.equity), formatUsdg(navPerShare(nav.equity, totalShares)));

The keeper uses the same functions for paper accounting, so the tape's NAV figures match the vault's definition exactly.