> For the complete documentation index, see [llms.txt](https://qiro.gitbook.io/qiro-vaults/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://qiro.gitbook.io/qiro-vaults/core-concepts/nav-and-valuation.md).

# NAV & Valuation

How a vault's assets are valued, who sets the value of deployed capital, and what constrains them.

Everything an investor earns shows up in one number: what a share is worth. That number is the vault's net asset value divided by the shares outstanding.

### What NAV consists of

```
NAV = idle cash + value of deployed capital − accrued fees
```

**Idle cash** is the vault's own token balance, less assets already earmarked for serviced redemptions and less fees accrued but not yet collected.

**Accrued fees** are a claim against the vault that has arisen but not yet been paid out. They are subtracted, so the share price you see is already net of them. See [Fees](/qiro-vaults/core-concepts/fees.md).

### The value of deployed capital

Once capital leaves a Subaccount for a borrower, its value is a fact about that borrower's obligations rather than a balance any contract can query. So the value is reported: **the curator posts it**, updated as the underlying facilities perform.

The contract rate-limits that mark, so a valuation cannot jump by an arbitrary amount in a single update. The curator's other limits are set out on [Risk Curator](/qiro-vaults/stakeholders/risk-curator.md).

### The two valuation bases

If the vault used a single price:

* **Single optimistic price:** a new depositor entering while yield is accruing would immediately own a pro-rata share of that unrealised yield, diluting existing holders who earned it.
* **Single conservative price:** an investor exiting could only claim principal, never the yield accrued during their holding period.

So the vault keeps both figures and uses each where it fits.

**Optimistic** counts three things: the idle cash in the vault, the capital currently out with borrowers, and the interest that capital has earned so far but has not yet been repaid. This is what deposits are priced at, and what the vault reports as its NAV.

**Conservative** counts the first two and leaves out the third. Interest earned but not yet received is held back until it actually arrives. This is what redemptions are priced at.

The gap between the two is therefore the yield that has been earned but not yet collected.

***

See [Subaccounts](/qiro-vaults/core-concepts/subaccounts.md) for where deployed capital sits, [Fees](/qiro-vaults/core-concepts/fees.md) for the fee mechanics, and [Risks](/qiro-vaults/legal-disclosure/risks.md) for valuation risk in context.