# Accounting Examples Scenario walkthroughs showing how value is represented across the system. State blocks show before/after; all numbers are exact unless marked ≈ (virtual-share rounding dust, always in the pool's favor). ## Example 1: fair deposit and exit pricing ``` Senior class: NAV 104, supply 100 (PPS 1.04 after some earned performance). New lender requests 52, servicer accepts: shares minted = 52 / 1.04 = 50 (optimistic price — no discount) NAV 104 → 156 supply 100 → 150 PPS 1.04 → 1.04 existing lenders unmoved ✓ Same lender exits all 50 later, price unchanged: fill pays = 50 × 1.04 = 52 (conservative price) NAV 156 → 104, supply 150 → 100, PPS 1.04 ✓ ``` ## Example 2: impairment window — both doors protected ``` NAV 1100 / supply 1000. Servicer marks expected loss 500. optimistic conservative before 1.10 1.10 impaired 1.10 0.60 after 300 written off 0.80 0.80 During the impaired window: → an exit of 100 shares pays 60: loss marks are reflected before exit. → a deposit of 110 mints 100 shares: unresolved recovery stays with the lenders who held the risk. When 200 of the mark releases, the write-up accrues to those lenders. ``` ## Example 3: coupon interval with a funding shortfall ``` Supply 200 (Alice 100, Bob 100). accrue 6 over the month Alice display-accrued 3, Bob 3. Nothing claimable. fund 4.5 rho = 4.5 / 6 = 0.75 Alice claimable 2.25, Bob 2.25 — total = cash funded ✓ Principal untouched; next interval starts clean. ``` ## Example 4: wrapper — mid-interval entrant pays full freight ``` Wrapper: supply 200 (Alice, Bob), holds 200 class shares at par. totalAssets 200. Class token accrues 10 (unfunded) totalAssets still 200 (realized-only) grossTotalAssets = 210 Carol wraps 100 of value: shares = 100 × 200 / 210 ≈ 95.24 (gross price — she pays for the accrual) Class token funds the 10: totalAssets = 300 + 10 = 310, supply ≈ 295.24 → PPS ≈ 1.05 Alice: 100 sh × 1.05 = 105 ✓ kept her full coupon Carol: 95.24 × 1.05 = 100 ✓ exactly what she paid — the step was a wash ``` Without gross pricing Carol would have minted 100 shares and skimmed ~3.3 of Alice and Bob's coupon. ## Example 5: wrapper — atomic income skim, rationed ``` Alice holds 100 wrapper shares worth 105 (5 of funded coupon in the price). Her cash ration: 5. requestUnwrap(4 shares, minCash = 4.2): owed value = 4 × 1.05 = 4.2 ≤ ration → fully cash-settled → 4.2 cash paid instantly, ticket 0, nothing queued ration 5 → 0.8 · remaining 96 shares still worth 1.05 each ✓ requestUnwrap(4 shares) again immediately: cash leg = min(4.2, ration 0.8) = 0.8 → the remaining 3.4 queues → the ration is consumed once, preventing a double-skim. ``` ## Example 6: queued exit keeps earning, then a loss reprices the fill ``` Alice queues a class-token exit of 100 shares at PPS 1.00 (lock-in-place). Month passes: coupon accrues and funds → her locked shares earned their coupon like everyone else's (claimable on the class token as usual). Before her fill, a loss marks conservative NAV down 10%: fill pays 100 × 0.90 = 90 — she bears NAV drift while queued (both directions), and her month of coupon remains untouched: income and principal stay separate. ``` For waterfall-specific allocations (multi-tier stacks, recoveries after exits), see [Waterfall Scenarios](/waterfall/scenarios).