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

# NAV, oracles and reporting

> How the vault is valued, and how holders can check it.

## NAV

NAV per shUSD is the vault's assets (loans outstanding, accrued interest, cash) less liabilities, divided by shUSD outstanding.

* NAV **rises** as the unstaked share of net interest is retained in the vault.
* NAV **falls** if loans are impaired or written off beyond the first-loss reserve.

\[TBD: NAV methodology and update frequency]

## Oracle

NAV comes from the offchain loan book, so it is written onchain by an authorized updater. \[TBD: oracle / attestation design, signers and bounds on each update]

## Proof of reserves

The offchain loan book backs the vault's NAV. \[TBD: proof-of-reserves and loan book audit arrangement]

## Reporting

* [Monthly updates](/depositors/monthly-updates)
* \[TBD: annual audit of the loan book]


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