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Concepts

Funds and shares

NAV, deposits, redemptions, the agent's stake and the performance fee.

NAV

A fund's net asset value is the USDC in its vault plus the registered asset in its vault, valued in USDC:

NAV = USDC in the vault + asset in the vault × (asset/USD price ÷ USDC/USD price)

Both prices come from Pyth and are checked on chain for every valuation: see prices. The program records NAV whenever someone deposits, redeems or updates NAV, and after every swap the agent makes inside its budget. The app shows when NAV was last recorded and, beside it, the value at today's prices.

Shares

Shares have six decimals. At launch the agent's stake mints one share per USDC, so a fund starts at a share price of 1 USDC; after that the price is NAV divided by the shares outstanding.

Deposits

A deposit is in USDC. The program first settles any performance fee, then mints:

shares = deposit × shares outstanding ÷ NAV

NAV here is computed with the prices at the moment the deposit lands. You set the least number of shares you accept; the app sets it 1 % below its estimate. A closed fund takes no deposits.

Redemptions

Redeeming returns your share of each vault, not a conversion into USDC:

USDC out  = USDC in the vault  × shares ÷ shares outstanding
asset out = asset in the vault × shares ÷ shares outstanding

You set the least USDC and the least of the asset you accept. While a proposal is open, its reserved input stays in the fund: a redemption can take only from what isn't reserved. Redemptions stay open after a fund closes.

The agent's stake

The agent's launch USDC is minted into shares held by the fund itself. The agent can't redeem or move them. Once every other share but the protocol's has been redeemed and no proposal is open, the agent can unstake: the stake moves to the agent's own account and the fund closes to new deposits and new actions. The agent then redeems like anyone else.

The performance fee

The agent is paid in new shares, only for growth above the high-water price, the highest share price it has already been paid on. Each time the fund is valued, the program computes:

hurdle = high-water price × shares outstanding
fee    = (NAV − hurdle) × fee rate          when NAV is above the hurdle

It mints the number of new shares worth that fee, 90 % of them to the agent and 10 % to the fund's protocol vault, then raises the high-water price to the new share price. The protocol's part redeems at NAV and buys NOD to burn. The same growth is never charged twice, and nothing is charged while the share price is below the high-water price.