Reserves and rounding

The vault tracks constituent quantities in each token’s smallest on-chain unit. It separates backing for circulating shares from amounts already owed to withdrawing holders.

The reserve ledger

Balance	Meaning
Active reserves	Accounted tokens backing the current share supply
Pending claims	Tokens reserved for shares that have already been burned
Actual token balance	What the token contract reports the vault holds

For a token to pass the vault’s coverage check, its reported balance must cover active reserves plus all pending claims. Minting checks coverage across every constituent. Claiming checks coverage for the selected token.

Pending claims are excluded from later mint and redemption calculations. In a managed basket, they are also excluded from amounts available for rebalancing.

Proportional inputs and outputs

Let R[i] be constituent i’s active reserve and S the total share supply immediately before an operation. All quantities below are raw integer units.

Input for minting g gross shares = ceil(R[i] × g / S)
Claim for redeeming r shares     = floor(R[i] × r / S)

Inputs round up so a mint supplies the required backing. Redemption outputs round down so a withdrawal does not claim more than its calculated proportion. Each calculation uses the token’s own units, so a six-decimal token and an eighteen-decimal token do not need matching raw quantities.

For example, assume a fee-free basket has 10 shares backed by 100 token A and 200 token B. Minting 2 gross shares requires 20 A and 40 B. With unchanged proportions, redeeming 1 share creates claims for 10 A and 20 B. This example uses exact divisions; real transactions may round at the smallest token unit.

Minimum mint sizes

Every seed constituent must contribute at least 1,000 raw units. A later mint must request at least 1e12 gross share units, or 0.000001 shares, and every constituent’s proportional amount must be at least 1,000 raw units before upward rounding.

Both conditions apply. A requested mint can exceed the share minimum and still be too small for one constituent. These limits keep upward rounding below 0.1% per mint component, but can exclude small deposits in low-decimal tokens.

Redemptions have no equivalent 1,000-unit floor. Individual outputs can round to zero; a redemption whose every output is zero is rejected.

Direct transfers do not buy shares

Sending tokens directly to the vault does not mint shares or increase active reserves. Pre-existing address dust and later donations remain outside the share-accounting ledger. They are not an additional redemption entitlement, and the community vault has no sweep function to recover them.

A direct transfer can restore an existing coverage shortfall without changing the recorded reserves or claims. It does not repair a token that blocks transfers or reports dishonest balances.

Use the supported funding and minting operations to acquire shares, and review redemption claims before withdrawing.