> For the complete documentation index, see [llms.txt](https://city-protocol.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://city-protocol.gitbook.io/docs/vault-as-a-service/nav-driven-accounting.md).

# NAV-driven accounting

VaaS uses NAV-driven accounting to keep vault shares aligned with the value of underlying assets.

The simplified share price formula is:

```
Vault share price = total vault NAV / total shares outstanding
```

For liquid onchain strategies, total vault NAV may be calculated from onchain positions and pricing feeds. For RWA-backed products or offchain strategies, NAV may depend on external administrator reports, reserve data, collateral values, and third-party verification.

**The NAV process generally includes:**

1\. asset and position data collection;

2\. reserve or collateral verification;

3\. fee accrual;

4\. liability adjustment;

5\. deviation check;

6\. signer review or oracle quorum;

7\. onchain NAV publication;

8\. reporting and dashboard update.

NAV updates should be frequent enough for the vault's liquidity profile. Liquid vaults may update more often. Private credit or structured yield vaults may update on a daily, weekly, or scheduled basis depending on available data and redemption terms.


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