> For the complete documentation index, see [llms.txt](https://docs.origami.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.origami.finance/the-third-fold-opal/vault-share-mechanics.md).

# Vault Share Mechanics

#### ERC-20 Shares

OPAL vault shares are standard, fully transferable ERC-20 tokens. Each share represents a proportional claim on the net asset value of the vault's balance sheet (total assets minus total liabilities).

$$
\text{Share Price} = \frac{\sum \text{Asset Values} - \sum \text{Liability Values}}{\text{Total Share Supply}}
$$

Shares can be transferred to any EVM wallet, used as collateral on lending protocols that accept ERC-20 tokens, held in institutional custody solutions (Fireblocks, Gnosis Safe), and integrated into yield aggregators or structured products.

#### Performance Fees

Fees are collected by minting new shares to the fee collector address. The performance fee rate is capped by the `MAX_PERFORMANCE_FEE_BPS` constant. Fee accrual is visible in real time by monitoring the share supply.

#### Deposits and Withdrawals

Users deposit the vault's accepted input token (e.g., USDT for the Perpetual sUSDe PT vault). The vault mints shares proportional to the deposited value relative to the current share price.

On withdrawal, the user redeems shares and receives the proportional claim on the vault's withdrawable reserves.

{% hint style="danger" %}
The withdrawable amount may be less than the total NAV per share if a portion of reserves is deployed as collateral against outstanding debt. See the vault-specific Token Flow page for details.
{% endhint %}