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NAV, liquidity and withdrawals

Your vault share token is a claim on the vault's Net Asset Value (NAV). This page covers how that value is set, how you exit, and how the two interact.

How the NAV is set​

Initially, it moves in steps rather than continuously. Trade finance settles on real-world timelines. Yield is earned when a trade closes and the end buyer pays for the goods, not block by block. So the NAV initially updates in steps, when settlement events happen. Over time, as reporting and verification become more automated, the aim is smoother, more frequent updates.

What the NAV is made of. At any time, the vault's value is the sum of its idle liquidity (the stablecoin reserves in the buffer), the capital deployed in live deals, and the financing income earned but not yet settled, minus any impairments and reserves held against risk.

Updates are checked by hand, not just by code. Each NAV update is verified against the actual settlement records before it is posted. The approach is deliberately conservative: gains are recognized when they are realized, not before. Every update is written on-chain and can be traced back to the trades behind it. See Transparency.

How withdrawals work​

The liquid buffer. Part of every vault is held ready to pay withdrawals: stablecoin reserves, available right away, and short-term on-chain positions such as tokenized treasury bills, which usually settle within a few days. The buffer earns yield while it waits. Idle balances held in stablecoins carry stablecoin risk. See Risks.

The FIFO queue. When withdrawals are larger than the buffer can cover, requests join a first-in, first-out queue. They are timestamped and paid in order as trades mature and capital returns to the vault. On-chain, these are asynchronous redemption requests under the ERC-7540 standard.

The normal window. Withdrawals usually settle within the 30 to 90 day deal length; deals typically run around 45 days. The window gets shorter as the vault grows and its deal flow becomes more varied. Under stressed market conditions, a full withdrawal can take longer.

Managing idle cash. Undeployed capital is held in a low-risk yield while it waits, rather than sitting idle, so it earns until it is deployed into a deal. The vault balances holding enough in the buffer to meet withdrawals against keeping enough deployed to earn the trade-finance yield, using staggered deal maturities, forward visibility on settlements, and paced deployment.

How pricing and timing interact​

Because the NAV moves in steps, the exact rules for pricing deposits and withdrawals matter. The rules are:

  • Deposit pricing. Deposits mint at the current NAV. Because the NAV moves in steps, entry timing around an update matters, and the rules that govern it, including how pending deposits are treated around a NAV update, are part of the vault parameters. [Published with the vault parameters before launch.]
  • Priced at NAV on fulfillment. A withdrawal is paid at the NAV when it is fulfilled, not at the NAV when it was requested.
  • You keep earning until paid out. Capital in the queue stays invested and continues to earn until it is paid out.
  • Partial fills and cancellation. A request can be partially filled, and it can be cancelled before it is fulfilled.
  • A gating power as a safeguard. A gating power is held to slow or pause withdrawals in stressed conditions, to protect remaining LPs from a disorderly exit.
  • Secondary price is not NAV. The share token is transferable, so it can trade off-vault. A secondary-market price can sit above or below NAV. The vault is not that market: primary deposits and withdrawals always price at NAV through the mechanics above, and redeeming against the vault requires a verified, whitelisted address.

[The exact queue timing is published with the vault parameters before launch.]