NAV Calculation Examples

Illustrative methods for computing the Net Asset Value of OLTA index products.

OLTA index products are transparently priced based on the Net Asset Value (NAV) per unit. This section provides example calculations to help developers and analysts replicate NAV off-chain or validate on-chain valuations.

Core NAV Formula

$${NAV}_{\text{per unit}} = \frac{\sum_{i=1}^{n} (P_i \times Q_i)}{T}$$

Where:

• Pᵢ = price of asset i (sourced via oracle or DEX aggregator)

• Qᵢ = quantity of asset i held by the index contract

• T = total number of index units in circulation

NAV is calculated in USDC-equivalent value and updates continuously based on asset prices and quantities.

Example (Simplified)

$${NAV} = \frac{(100 \times 10) + (2 \times 1000) + (0.5 \times 2000)}{1000} = \frac{1000 + 2000 + 1000}{1000} = 4.00$$

Assume the following:

• 3 assets: A, B, and C

• Prices: A = $100, B = $2, C = $0.50

• Quantities held: A = 10, B = 1000, C = 2000

• Index units in circulation: 1,000

Calculation:

NAV per unit = $4.00 USDC

In practice, pricing uses smoothing techniques (e.g. VWAP, TWAP), slippage-aware valuations, and fallback oracles when necessary. See Pricing & NAV section for full methodology.

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Total NAV Formula (Brute NAV)

$${NAV}_{\text{total}} = \sum_{i=1}^{n} (P_i \times Q_i)$$

Where:

• Pᵢ = price of asset i

• Qᵢ = quantity of asset i held in the index

• n = total number of assets in the fund

This gross NAV reflects the full value of the portfolio. It is used for treasury tracking or index-wide reporting.

The per-unit NAV is simply the total NAV divided by the number of index tokens in circulation.

Example (Simplified)

Assume the following:

• 3 assets: A, B, and C

• Prices: A = $100, B = $2, C = $0.50

• Quantities held: A = 10, B = 1000, C = 2000

Calculation:

$${NAV}_{\text{total}} = (100 \times 10) + (2 \times 1000) + (0.5 \times 2000) = 1000 + 2000 + 1000 = 4000$$

NAV total = $4000 USDC

in practice, pricing uses smoothing techniques (e.g. VWAP, TWAP), slippage-aware valuations, and fallback oracles when necessary. See Pricing & NAV section for full methodology.