NAV & Valuation Methodology

Nyx produces a shadow NAV. It reconciles the shadow NAV against the client's fund administrator; the administrator's NAV remains official.

Nyx routes every asset to exactly one pricing rung, keyed off its registered asset class, five routes, no others exist:

• →Crypto / stablecoin: CoinGecko daily (00:00 UTC) price, frozen per run.
• →Listed equities, ETFs, funds, and priced commodities/futures: Yahoo Finance daily close, keyed to the registry’s price_symbol override where one is set.
• →Non-USD fiat cash: a daily FX pair rate against USD.
• →USD fiat cash: face value ($1, the functional currency; definitional, not fetched).
• →Bonds, options, private/illiquid positions, and real assets: manager manual fair-value marks. No market price route exists for these classes. A commodity or futures position without a registered price symbol falls back to the same manual-marks path (never a guessed quote, never carried silently at zero without surfacing as unpriced).
• →Assets that cannot be priced are carried at zero and the run is flagged partial, never a fabricated price.

Valuation policy for manual marks: every fair-value mark carries an explicit provenance record and an age/staleness indicator, and a mark update on a manual-mark-only class routes through the maker-checker dual-control approval workflow before it can affect NAV.

Staleness: quotes are graded against the valuation date; a stale quote is treated as unpriced (fail-safe).

The valuation point is the 00:00 UTC snapshot of the valuation date; the valuation date is the only time input, with no intraday cut.

Re-running a historical date reproduces the identical NAV, verified by a SHA-256 hash over the canonical inputs stored on every run.

The general ledger is double-entry and append-only at the database layer; corrections are reversing entries only. Every entry must balance exactly, at 8-decimal-place precision, before it can commit. Digital assets are carried at cost in the general ledger, with fair value marked through dedicated control accounts.

Cost basis / lot relief methods available: average cost (default), FIFO, or HIFO, configurable per fund. Specific identification is not supported. Disposal history is append-only.

The management fee accrues on pre-fee NAV by default (configurable to a gross or net basis), using an ACTUAL/365 day count, prorated over elapsed days since the last accrual, and accrued at each NAV strike.

The performance fee accrues against a per-unit high-water mark, with an optional hurdle; the fee base is per-unit NAV net of the management fee. The high-water mark ratchets only at crystallisation (annual or on redemption), and crystallised amounts are banked, never reversed by a subsequent drawdown.

Two-strike sequence: NAV₁ fixes the fee base and fees post; NAV₂ is the reportable post-fee NAV.

Accounting operates at the subscription-lot level: each lot carries its own units, high-water mark, and fee terms (share-class overrides supported). Investor capital ties to fund NAV within 1e-8 as a fail-closed check on every run.

Equalisation is achieved through per-lot high-water marks; equalisation credits/deficits are not used.

Staking, reward, and airdrop income is recognised when the manager books the corresponding reconciliation item, at that item's observed price, not accrued over time.

Wallet-to-wallet and bridge transfers preserve cost basis and holding period when booked. Pairing the outgoing and incoming legs is a manager action, not automatic. An unpaired in-flight transfer at a valuation point appears as an open reconciliation break.

Economic recognition occurs at trade date; redemption cash settlement is a distinct, later-dated step through a redemptions-payable account. General T+n settlement-date accounting is not implemented.

Exact decimal arithmetic is used throughout: no floating point on money. Banker's rounding is applied; USD is carried at 8 decimal places, quantities at 18. Sums are computed at full precision and rounded once.

Every core ledger/NAV/fee lifecycle action emits an event to an append-only audit stream enforced by database-level immutability: updates, deletes, and truncation are rejected for every database role, including privileged service roles.

• →An asset that cannot be priced contributes zero to gross asset value and the NAV run is flagged partial; fee, capital, and dealing engines refuse to run on a partial NAV. There is no stale-price reserve policy.
• →Non-USD fiat cash is FX-revalued at each strike; non-USD fiat held as an asset position has no FX source in the NAV pricing seam and falls to a manual mark or unpriced.
• →DeFi and perpetual futures are excluded from NAV (see Scope Exclusions above).
• →Transfer pairing and staking-income recognition are manager actions; timeliness depends on the manager’s reconciliation cadence.
• →The standing cost-basis election is fund-wide (average, FIFO, or HIFO); specific-lot identification is available per disposal when booking a reconciliation break, not as a standing method.
• →The audit event stream is append-only and hash-chained from 2026-08; prior rows were retro-chained in (created_at,id) order. Chain heads are periodically Bitcoin-anchored via OpenTimestamps; events since the most recent anchor are not yet externally pinned.
• →Price caching is per-server-instance; historical daily prices are immutable once fetched.