# NAV Calculation The Net Asset Value (NAV) of Hypurr Vault is calculated hourly by a keeper bot that values all vault assets—both liquid WHYPE reserves and NFT holdings—to determine a fair price per share. Understanding this calculation helps you make informed investment decisions. ## NAV Calculation Formula ### Total NAV Formula ``` Total NAV = (Vault HYPE - Pending Deposits) + Vault Manager HYPE + NFT Portfolio Value ``` ### NAV per Share ``` NAV per Share = (Total NAV × 10¹⁸) ÷ Total Shares Outstanding ``` The NAV per share determines how many shares you receive when depositing or how much HYPE you receive when redeeming. ### Components #### Liquid Assets HYPE tokens held in both the vault contract and vault manager wallet, minus any pending deposits awaiting processing. #### NFT Portfolio All Hypurr NFTs held by the vault manager, valued using our weighted average floor price methodology. #### Share Conversion NAV is expressed in wei (10¹⁸ units per HYPE) for precise calculations when minting or burning shares. ## NFT Valuation: Weighted Average Floor Price The most critical component of NAV calculation is accurately valuing the NFT portfolio. We use a sophisticated weighted average floor price methodology that emphasizes recent market activity. ### How It Works #### 1. Recent Sales Window The oracle queries the most recent NFT sales from the past 30 days, collecting up to 100 sales transactions for analysis. #### 2. Linear Decay Weighting Each sale is assigned a weight based on recency. The most recent sale receives maximum weight, with older sales receiving progressively less weight in a linear decay pattern. #### 3. Outlier Detection Statistical analysis identifies and flags potential outliers using standard deviation techniques, ensuring that unusual transactions don't distort the floor price. #### 4. Weighted Average Calculation The final floor price is computed as a weighted average of the cleaned dataset, giving you a market-responsive yet stable valuation. ### Why This Approach? * ✓ **Market Responsive:** Recent sales are weighted more heavily, ensuring NAV reflects current market conditions * ✓ **Manipulation Resistant:** Outlier detection prevents single unusual transactions from distorting valuations * ✓ **Transparent:** The methodology is deterministic and auditable via on-chain inputsCommit hashes ## Confidence Scoring Every NAV report includes a confidence score (measured in basis points) that indicates the reliability of the valuation. Higher confidence means more recent and liquid price data. ### Confidence Factors #### Base Confidence Starting confidence level set by protocol parameters. **Value:** Configurable #### Recency Penalty Applied when floor price data is stale. The penalty increases as the most recent sale ages beyond 30 days. **Max Penalty:** Up to -3,000 bps #### Coverage Penalty Applied when there are fewer than 10 recent sales, indicating insufficient market activity for robust valuation. **Max Penalty:** Up to -1,000 bps ### Interpreting Confidence Scores {% hint style="info" %} Low confidence doesn't necessarily mean inaccurate NAV—it indicates that market data is limited or dated. During periods of low confidence: * NAV calculations may be based on older sales data * Price discovery might be slower to reflect market changes * The vault may pause deposits/redemptions if confidence falls below protocol thresholds {% endhint %} ## NAV Update Process NAV is calculated and updated automatically by a keeper bot on a regular schedule: ### 1. Asset Query Keeper fetches current holdings from the vault contract and vault manager wallet, including both WHYPE reserves and NFT inventory. ### 2. Sales Data Collection Recent NFT sales are retrieved from marketplace APIs and on-chain transaction logs covering the past 30 days. ### 3. Floor Price Calculation Weighted average floor price is computed using the methodology described above, with outlier detection and recency weighting applied. ### 4. NAV Computation & Validation Total NAV and per-share values are calculated. The oracle validates that NAV drift is within acceptable bounds compared to the previous report. ### 5. On-Chain Submission The NAV report is signed by the keeper wallet and submitted to the vault contract, incrementing the epoch counter and enabling queue processing. ### 6. Snapshot Storage The vault stores an epoch snapshot containing NAV per share, confidence, and an inputsCommit hash for auditability of the calculation inputs. ## Built-In Safety Mechanisms ### 🛡️ Drift Bounds The vault contract enforces maximum drift limits—if NAV changes too dramatically between reports, the submission is rejected to prevent manipulation or errors. ### ⏱️ Staleness Protection NAV reports include expiration timestamps. If a report is too old or the vault hasn't received an update within the staleness threshold, deposits and redemptions are paused. ### 🔐 Signed Reports All NAV reports must be cryptographically signed by the authorized oracle address. The vault verifies signatures before accepting updates, preventing unauthorized manipulation. ### 📝 Audit Trail Each NAV report includes an inputsCommit hash—a cryptographic commitment to the calculation inputs that allows retrospective verification of NAV accuracy. ## Ready to Invest in Hypurr Vault? Learn more about how the vault works or start your first deposit today. * [How to Deposit/Redeem](/hypurr-vault/deposit-redemption.md) * [Understand NAV](/hypurr-vault/nav-calculation.md) * [Open Vault](https://www.rip.xyz/rhypurr) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.rip.xyz/hypurr-vault/nav-calculation.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.