> For the complete documentation index, see [llms.txt](https://ipusd.gitbook.io/ipusd-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ipusd.gitbook.io/ipusd-docs/technical-reference/accounting-and-settlement.md). # Accounting and Settlement ### Vault accounting The IP Vault accounts for liquid ipUSD, registered RWAs, and assets moving through an RWA purchase or redemption process. At a high level: > Total Vault Value = ipUSD held by the Vault + Outstanding RWA Purchase Value + Outstanding RWA Redemption Value + Current Value of Accounted RWAs > NAV per share = Total Vault Value ÷ Total Supply of IP Vault Shares Outstanding RWA Purchase Value represents ipUSD that has left the Vault for an RWA purchase but has not yet been reconciled against received RWA units, a refund, or an authorized shortfall. Outstanding RWA Redemption Value represents an RWA position that has left the Vault for redemption but whose ipUSD proceeds have not yet been reconciled. The interface can display these outstanding values as Assets in settlement. Including these values prevents assets from disappearing from Vault accounting while they move through an offchain or multi-stage settlement process. When no IP Vault shares exist, the initial ipUSD-to-share conversion rate is 1:1. After shares have been issued, subscriptions receive shares using the applicable NAV per share at Settlement. Subscription Settlement calculates the share allocation from the Vault state before adding the newly settled ipUSD. This prevents a subscription from increasing the Vault value used to price its own shares. ### Asset valuations Each registered RWA uses an approved valuation source. State-changing RWA operations require a positive, valid, and sufficiently recent valuation. The current default maximum valuation age is 45 days and can be configured between one and 90 days. The current maximum permitted price deviation is 10% (1,000 bps). Read-only NAV may continue to display the last valid valuation when a newer valuation becomes stale. An unhealthy valuation state can prevent affected asset-management operations and disable Instant Withdrawal. Strategy track record, Underlying fund return, and Target yield are reference metrics and are not direct inputs to NAV. Latest yield is derived from changes in IP Vault’s NAV per share over time. NAV itself continues to use the Vault’s onchain balances, assets in settlement, and registered RWA valuation sources. ### Subscription queue Subscriptions follow a contract-enforced FIFO queue. Administrators set Settlement Capacity, while the contract determines which subscriptions are processed from the front of the queue. Subscription Settlement can partially process the final subscription covered by the Round’s remaining Settlement Capacity. The unsettled remainder keeps its position through a linked record. Normal subscriptions are converted into shares during `closeRound`. `openRound` establishes the Round parameters, while `convertQueue` freezes the eligible subscription boundary without issuing shares. Queued ipUSD can become claimable before normal Round Settlement when it is matched against an Instant Withdrawal. Remaining Settlement Capacity reaching zero does not by itself stop new subscriptions. During the limited launch, new subscriptions are accepted only while the applicable launch cap remains available. New subscriptions continue entering the queue and wait for future Capacity. ### Standard Withdrawal queue Standard Withdrawals use a separate contract-enforced FIFO queue. Administrators set Standard Withdrawal Capacity, while the contract processes requests from the front of the queue. Standard Withdrawal requests are not partially settled. If the request at the front cannot be covered in full, it remains queued and requests behind it cannot be processed first. A newly submitted Standard Withdrawal waits for Settlement in a future Round with sufficient Standard Withdrawal Capacity. ### Batch claiming `claimMany` supports batch claiming of IP Vault shares allocated through subscriptions. `claimWithdrawMany` supports batch claiming of ipUSD allocated through Standard Withdrawals. Each function can process up to 50 eligible record IDs per transaction. The interface groups claimable shares and ipUSD into one Claim flow. When 50 or fewer records are available, it displays Claim all. When more than 50 records are available, the first batch processes up to 50 records and the remaining records stay claimable. Depending on the record types, claiming shares and ipUSD may require separate underlying transactions. Batch claiming does not change Settlement results, user entitlement, or FIFO order. ### RWA purchase settlement An RWA purchase is recorded in two stages. First, `extractCash` transfers ipUSD out of the Vault and records it as Outstanding RWA Purchase Value. When the purchased RWA arrives, `settleExtract` validates the token, units, and valuation before adding the position to the Vault. If the purchase cannot be completed, the extracted amount may be reconciled through a refund. An authorized shortfall reduces the remaining outstanding value and is reflected in NAV. ### RWA redemption settlement An RWA redemption follows the reverse process. `extractRwa` transfers an accounted RWA position out of the Vault and records it as Outstanding RWA Redemption Value. When ipUSD proceeds return, `settleRwaExtract` reconciles the payment and accounts for the returned liquidity. This two-stage process keeps assets leaving the Vault, assets arriving, refunds, shortfalls, and final proceeds separately traceable onchain.