# Vault shares and NAV

This page explains how vault shares represent ownership, and how Net Asset Value, NAV, is used for deposits and redemptions.

### Vault shares

When you deposit, you receive vault shares minted to your wallet. Shares represent your proportional ownership of the vault.

### NAV, Net Asset Value

At a high level, NAV is the value of the vault’s assets and open positions, net of fees and liabilities, divided by total shares.

NAV is used to:

1. Determine how many shares you receive on deposit
2. Determine how much USDC you receive on redemption

### What affects NAV

Typical inputs include:

1. Vault balances
2. Open positions and unrealized PnL
3. Funding, fees, and execution costs
4. Pending liabilities, if any