# How shares are calculated

When you deposit into a vault, shares are not minted instantly.

Your deposit first becomes part of a batch, which is then allocated into strategies. Shares are calculated only after this allocation is complete.

This ensures that all users enter the vault at a fair and consistent valuation.

**Step 1. Measure the change in vault value**

Once the batch is deployed, the system calculates how much the vault’s total value has increased.

This is called the NAV delta (Net Asset Value change):

batch\_NAV\_delta = vault\_NAV\_after − vault\_NAV\_before

**Step 2. Calculate total shares to mint**

The number of new shares created for the batch is proportional to this value change:

batch\_shares = batch\_NAV\_delta × total\_shares\_supply / vault\_NAV\_before

**Step 3. Distribute shares to users**

The newly minted shares are then distributed between users proportionally to their contribution to the batch.

Example

* User A deposits: 1,000 USDC
* User B deposits: 2,000 USDC
* Total batch: 3,000 USDC

Vault before allocation:

* NAV: 30,000 USDC
* Total shares: 300,000

After allocation:

* NAV: 33,000 USDC

**Step 1. NAV delta**

33,000 − 30,000 = 3,000 USDC

**Step 2. Shares minted**

(3,000 × 300,000) / 30,000 = 30,000 shares

**Step 3. Distribution**

* User A receives: 10,000 shares
* User B receives: 20,000 shares

**Why this matters**

This mechanism ensures that:

* all users enter at the same fair valuation
* no one is diluted by timing differences
* shares always reflect real underlying value


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