NAV Settlement Flow

NAV settlement in King's Vault V2 is a secure two-step (propose-confirm) process. It prevents single-block flash loan manipulations and allows the Admin to verify values before performance fees are minted.

sequenceDiagram
    participant Keeper
    participant Admin
    participant Controller
    participant Vault
    participant Strategy

    Keeper->>Controller: proposeValues(vault)
    Controller->>Vault: totalSupply()
    Controller->>Vault: idleAssets()
    Controller->>Strategy: totalAssets()
    Controller->>Controller: store pending epoch
    Admin->>Controller: confirmValues(vault, epoch)
    Controller->>Controller: validate epoch and freshness
    Controller->>Controller: promote pending to confirmed
    opt profit and manager configured
        Controller->>Vault: mintFeeSharesOnlyForController(manager, shares)
    end

Propose Values

The Keeper initiates the process by calling proposeValues(vault). The Controller takes a snapshot of the following fields:

Field	Source
`assets`	`totalStrategyAssets(vault) + IVault(vault).idleAssets()`
`supply`	`IERC20(vault).totalSupply()`
`pnlBasis`	`activeBookValue + recalledYield`
`pnl`	Absolute difference between `totalStrategyAssets` and `pnlBasis`
`isProfit`	`totalStrategyAssets >= pnlBasis`

Confirm Values

The Admin finalizes the settlement by calling confirmValues(vault, epoch).

Check	Failure
Proposal is no older than `MAX_PROPOSAL_AGE = 1 hours`	`ProposalStale(pendingTimestamp, currentTimestamp)`
Epoch equals latest pending epoch and is greater than confirmed epoch	`EpochMismatch(expected, actual)`
Caller has `DEFAULT_ADMIN_ROLE`	AccessControl revert

Performance Fee Shares

If the confirmed epoch is profitable and a fee manager is configured, the Controller instructs the vault to mint fee shares directly to the manager. This naturally dilutes existing holders to pay the performance fee.

fee = pnl * feeRate / 1_000_000
shares = supply * fee / (assets - fee)

If the confirmed epoch is a loss (isProfit == false), the Controller reduces the activeBookValue to match the new reality and mints no fee shares.