NAV Calculation

The Net Asset Value (NAV) is the foundational pricing metric used across all OLTA funds.

The Net Asset Value (NAV) represents the total value of assets held by a fund, divided by the number of fund units in circulation. This figure determines the price per unit for both new deposits and redemptions, ensuring fairness, transparency, and consistency for all investors.

NAV is calculated in USDC to guarantee pricing stability, simplify onchain logic, and maintain alignment with institutional standards.

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USDC as Base Currency

OLTA uses USDC as the reference unit for all NAV and pricing operations. This choice brings stability, simplifies fund operations, and aligns with institutional accounting standards.

Key advantages:

• Stable denomination

• Predictable investor entry and exit

• Simplified onchain logic and reporting

• Alignment with US-regulated stablecoin infrastructure

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NAV Per Unit Formula

The NAV per unit is determined using:

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

Where:

• Pᵢ = price of asset i (in USDC)

• Qᵢ = quantity of asset i held in the fund

• U = total number of fund units in circulation

• n = number of assets in the index

All asset prices are pulled from onchain oracles and smoothed via TWAP/VWAP logic to reflect fair value.

All OLTA funds are priced and tracked based on their per-unit NAV. However, for transparency and treasury management, the total or "gross" NAV may also be referenced. This represents the full USDC-equivalent value of the assets held by the fund. See Developer Portal with NAV Calculation Examples to know more.

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Onchain Calculation and Visibility

• NAV data is stored and updated onchain in real-time

• Logic is fully enforced via smart contracts, with no manual overrides

• Users can access NAV information transparently via the OLTA interface

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This USDC-denominated system ensures consistency, reduces valuation distortions, and aligns with institutional compliance standards.