Vault accounting lab

A vault holds an underlying asset and issues proportional share claims. Strategy profit or loss changes asset value; fees, deposits, and withdrawals then change who owns those claims.

This educational model uses exact decimal arithmetic, fee-share minting, a fixed one-year management-fee period, and a one-dollar first-deposit share price. It is not a named protocol or investment recommendation.

Accounting inputs

Controls

Existing assets

Unit: USD · Must be greater than or equal to 0

USD

Underlying asset value already controlled by the vault.

Existing shares

Unit: shares · Must be greater than or equal to 0

shares

Outstanding claims held before this accounting transition.

New deposit

Unit: USD · Must be greater than or equal to 0

USD

Fresh underlying asset value entering after fees are priced.

Profit or loss

Unit: USD · Signed; loss cannot exceed assets

USD

External strategy result applied before fees; use a minus sign for loss.

Management fee

Unit: % / year · 0% through 100%

% / year

Annual rate applied over this lab's fixed one-year accounting period.

Performance fee

Unit: % · 0% through 100%

%

Rate applied to positive period profit; no high-water mark is modeled.

Withdrawal shares

Unit: shares · Cannot exceed new shares minted

shares

New depositor shares burned after the deposit transition.

Reset allShare current state

Current transition

Claims follow assets

The strategy adds $50,000.00 to assets before fees. The vault mints 1,498.308362 fee shares and 9,666.505558 depositor shares. Burning 5,000.000000 depositor shares returns $51,725.00; final NAV is $1,098,275.00.

Final NAV

$1,098,275.00

Share price

$10.345000

New shares

9,666.505558

Accounting ledger

Results

Vault results. Display values are rounded; calculations retain Decimal precision.

Metric	Value	Unit	Meaning
Opening NAV	1,000,000.00	USD	Existing underlying assets at the start of the transition
Profit or loss	+$50,000.00	USD	Exogenous strategy result applied before fees
NAV after profit or loss	1,050,000.00	USD	Asset value before fee-share minting
Management fee value	10,500.00	USD	Annual rate applied for the fixed one-year accounting period
Performance fee value	5,000.00	USD	Rate applied only to positive profit in this model
Fee shares minted	1,498.308362	VAULT-SHARE	Claim issued to the fee recipient instead of assets removed
New depositor shares minted	9,666.505558	VAULT-SHARE	Deposit value divided by the post-fee share price
Depositor ownership after deposit	8.70	percent	New shares divided by total post-deposit shares
Withdrawal value	51,725.00	USD	Underlying value transferred for burned depositor shares
Final NAV	1,098,275.00	USD	Assets remaining after the withdrawal settles
Final share price	$10.345000	USD per VAULT-SHARE	Final NAV divided by final outstanding shares
Depositor ownership after withdrawal	4.40	percent	Remaining depositor shares divided by final total shares

Accounting sequence

State transition

Assets move first; share claims are then minted or burned against the current share price.

The vault moves from $1,000,000.00 and 100,000 shares to $1,098,275.00 and 106,164.8139 shares. The new depositor finishes with 4.40% ownership.

Vault accounting state transitionFive stages show opening state, profit or loss, fee-share minting, deposit, and withdrawal. A complete data table follows.

Inspectable alternative to the state-transition diagram. Display values are rounded; calculations retain Decimal precision.

Stage	NAV	Total shares	Share price	State change
Opening state	$1,000,000.00	100,000	$10.0000	Existing assets and outstanding claims enter the period.
Profit or loss applied	$1,050,000.00	100,000	$10.5000	Strategy return changes assets; the share count is unchanged.
Fee shares minted	$1,050,000.00	101,498.3084	$10.3450	Fee claims dilute existing owners without removing vault assets.
Deposit accepted	$1,150,000.00	111,164.8139	$10.3450	Underlying assets enter and priced vault shares are minted.
Withdrawal settled	$1,098,275.00	106,164.8139	$10.3450	Vault shares burn and proportional underlying value exits.

Claim composition

Ownership and dilution

Pattern, label, and position identify each owner; color is supplementary.

• Existing shareholders
• Fee recipient
• New depositor

Before feesExisting shareholders own the pre-transition share supply.

After fee sharesThe fee recipient owns 1.4762% after fee shares are minted.

After depositThe new depositor owns 8.6957% before withdrawing.

After withdrawalThe new depositor retains 4.3955% after burning shares.

Ownership percentages at every dilution stage. Zero-percent owners remain listed so the claim structure is explicit.

Stage	Owner	Ownership
Before fees	Existing shareholders	100%
Before fees	Fee recipient	0%
Before fees	New depositor	0%
After fee shares	Existing shareholders	98.5238%
After fee shares	Fee recipient	1.4762%
After fee shares	New depositor	0%
After deposit	Existing shareholders	89.9565%
After deposit	Fee recipient	1.3478%
After deposit	New depositor	8.6957%
After withdrawal	Existing shareholders	94.1932%
After withdrawal	Fee recipient	1.4113%
After withdrawal	New depositor	4.3955%

Balance-sheet view

Dilution ledger

Every row totals 100% when shares exist; an empty vault totals 0%.

Ownership claim percentages before and after each share-supply transition.

Stage	Existing owners	Fee recipient	New depositor	Total
Before fees	100%	0%	0%	100%
After fees	98.5238%	1.4762%	0%	100%
After deposit	89.9565%	1.3478%	8.6957%	100%
After withdrawal	94.1932%	1.4113%	4.3955%	100%

Guided comparison

Guided scenarios

Compare first deposit, positive return, and loss accounting.

1. 01Profit, fees, and withdrawalFollow value through profit, fee-share dilution, a new deposit, and a partial withdrawal without changing the underlying share price mechanically.
2. 02First depositorStart an empty vault under the documented one-dollar initial share-price convention and inspect who owns the resulting shares.
3. 03Loss, then fresh capitalObserve a loss reducing NAV and share price, a zero performance fee, and a new depositor receiving more shares per contributed dollar.

Terms in this model

Separate the system from its claims

Vault

The onchain accounting container that holds assets and issues shares.

Fund

The broader pooled investment arrangement; it may include legal and operational layers outside this vault.

Strategy

The activities that deploy underlying assets and create profit or loss.

Underlying asset

The economic value controlled by the vault and transferred on deposit or withdrawal.

Vault share

A proportional claim on vault NAV, not a fixed claim on a fixed quantity of assets.

NAV

Net asset value: the modeled USD value of assets remaining under vault control.

Return source

The strategy's counterparties or economic activities pay gains; depositors and fee minting do not create return by themselves.

Loss absorber

Shareholders absorb strategy loss through a lower NAV and share price.

The lab treats strategy profit or loss as an external input. It does not model a specific protocol, high-water mark, locked profit, streaming fee checkpoint, asset decimals, oracle, or transaction ordering attack.