> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aarc.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# NAV & Transparency

> How NAV is calculated and verified

Transparency is a core principle of BTCY. NAV is published daily on-chain; proof of reserves is verified monthly via Accountable's dashboard (on-chain PoR feed launching separately).

## NAV Calculation

### Formula

```
NAV per iBTCY = (Buffer BTC + SSBAF Units * SSBAF NAV per Unit - Accrued Platform Fees) / Total iBTCY Supply
```

The platform fee accrues daily into NAV; the on-chain implementation is authoritative.

| Component              | Description                                                     |
| ---------------------- | --------------------------------------------------------------- |
| **Buffer BTC**         | Native BTC held in custody at Archax, valued at market price    |
| **SSBAF Units**        | Fund units held by the issuer, valued at Sygnum's published NAV |
| **Total iBTCY Supply** | Outstanding iBTCY tokens on Ethereum Mainnet                    |

### Non-Rebasing

iBTCY is **non-rebasing**: the token count stays constant while NAV accrues yield. This differs from rebasing tokens where the token balance changes.

| Rebasing Token           | Non-Rebasing (iBTCY)     |
| ------------------------ | ------------------------ |
| Balance changes daily    | Balance stays constant   |
| 100 tokens to 105 tokens | 100 tokens at higher NAV |
| Complex for DeFi         | Simple for DeFi          |

## NAV Publication

| Type                     | Frequency | Purpose                                         | Provider         |
| ------------------------ | --------- | ----------------------------------------------- | ---------------- |
| **Daily Indicative NAV** | Daily     | Reference for instant operations                | Chainlink oracle |
| **Monthly Official NAV** | Month-end | Accounting backstop, primary redemption pricing | Accountable      |

### Daily Indicative NAV

Published via Chainlink oracle on Ethereum. Used for:

* Instant subscription pricing
* Instant redemption pricing
* Real-time transparency

### Monthly Official NAV

Published after month-end. Used for:

* Primary redemption pricing
* Accounting reconciliation
* Official reporting

### Staleness (indicative)

| Staleness of last NAV update | System response (indicative)                     |
| ---------------------------- | ------------------------------------------------ |
| Under 24 hours               | Normal                                           |
| 24-36 hours                  | Watch; investigation                             |
| 36-48 hours                  | May pause minting and instant redemptions        |
| Over 48 hours                | May pause routine operations pending remediation |

### NAV error correction (indicative)

| Error vs corrected NAV | Treatment (indicative)                                                                                              |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------- |
| Under 0.1%             | Often de minimis; no material adjustment                                                                            |
| 0.1% or more           | Correct and, where required, adjust affected subscriptions and redemptions; affected investors notified as required |

### Redemption price risk

Redemption is typically priced at NAV on the **settlement** date, not the request date. NAV can move between request and settlement; the holder bears that movement.

## Proof of Reserves

Monthly proof-of-reserves verification confirms that total custody assets back outstanding iBTCY supply.

### What It Covers

| Asset       | Custodian | Verification                                                  |
| ----------- | --------- | ------------------------------------------------------------- |
| Buffer BTC  | Archax    | Dashboard attestation; on-chain PoR feed launching separately |
| SSBAF Units | Sygnum    | NAV reconciliation                                            |

### How It Works

1. **Accountable** independently calculates total assets
2. Attestation status is published on the [Proof of Solvency dashboard](https://aarc.accountable.capital/); a separate Chainlink on-chain PoR feed will launch when deployed
3. Attestation confirms: `Total Assets ≥ Total iBTCY Supply × NAV`

### Verification Frequency

* **Continuous monitoring** of buffer BTC
* **Monthly attestation** reconciling all components

## Real-Time Dashboard

Key metrics are available at the [Aarc Proof of Solvency dashboard](https://aarc.accountable.capital/):

* **Buffer percentage**: Current buffer as % of NAV
* **NAV**: Daily indicative and monthly official
* **Proof-of-Reserves**: Latest attestation status
* **SSBAF performance**: Monthly reporting

Investor onboarding and subscription status remain on [app.aarc.xyz](https://app.aarc.xyz).

<Card title="Fees" icon="receipt" href="/product/fees">
  How fees are accrued into NAV
</Card>

***

<Note>
  Available only to eligible professional/qualified investors on an invite-only basis, subject to onboarding and compliance approval. For informational purposes only and not investment advice. Not an offer to the public or a solicitation where unlawful. No retail distribution. Not available to US Persons.

  [Disclaimers](/legal/disclaimers) · [Platform and issuer](/legal/platform-legal)
</Note>