Valuation Reporting - NAV

With Enzyme Onyx, the Net Asset Value calculation is not in real-time. By default it follows an asynchronous model. Vault Owners or Admins are required to consolidate the value of the underlying portfolio and to report it directly into the Onyx Administration App.

NAV Formula

The Vault Owner or Admin is required to report the Portfolio Value, the protocol then computes it with Expenses and Incomes, the Liquidity Buffer, as well as any accrued Fees that wouldn't have been distributed yet.

Net Asset Value = Portfolio Value + Liquidity Buffer + Capitalised Expenses - Deferred Income - Accrued Fees

Note: Onyx automatically accrues fees when a NAV update is performed (for management and performance fees), and upon processing deposits or redemptions (for entry and exit fees). However, this does not imply that the corresponding liquidity is already held within the vault smart contract.

Accrued fees may remain deployed within the management environment and continue to be invested. Onyx simply tracks the value of these fees through the App. It is the responsibility of the Manager to transfer the corresponding liquidity back to the vault when distribution is required. Learn more about Fees HERE.

These accrued fees must nevertheless be accounted for and deducted to ensure accurate accounting and Net Asset Value (NAV) calculation.

NAV is calculated by taking into account accrued fees that have not yet been distributed.

NAV Reporting

The Portfolio Value reporting is executed as an on-chain transaction, requiring both approval and gas fee payment from the Owner Wallet.

With Enzyme.Onyx, the valuation method is left open—Vault Owners and Managers can handle it internally, work with their preferred provider, or ask Enzyme for partner recommendations.

NAV Automation

While the NAV requires a manual input by default, Enzyme can help develop a custom flow to automate the NAV reporting. More info HERE.

To learn more about Valuation Reporting, visit Accounting Management.