Product Pricing and Returns
Returns generated by ArcoUSD reserve assets and returns attributed to Savings are connected through the allocation and cost policy. The same income is not counted twice in reserve assets and Savings performance.
Underlying Assets and Valuation Sources
Valuation sources depend on the assets and strategies connected to the vault. Each product specification states the valuation scope, data provider, valuation date and currency, treatment of costs, and update frequency. These valuations are translated into a price per ProductToken and used alongside the payment asset price to calculate deposit and redemption quotes. Asset or strategy valuations, the price of one ProductToken, assets held or managed by a vault, and cumulative deposits are reported on their respective bases. When reading a valuation, check its price unit, reference time and the scope of assets included in the metric.Pricing and Issuance Quantities
Products that use valuation-based pricing apply the ratio between the product price and payment asset price expressed in the same reference currency. The calculations below describe the valuation relationship before fees. ArcoUSD’s 1:1 reference exchange and confirmed OTC execution quotes follow the conditions of the relevant product and route.
Before a transaction,
quoteDeposit and quoteRedeem can be used to view issuance quantities and payout amounts. Transactions use integer quantities in each token’s smallest unit, so division and unit conversion may result in truncation. Partners should distinguish display decimals from the integer quantities used in transactions.
Strategy Performance and Rewards
Interest, dividends, rewards and asset price changes affect NAV according to how they are included in the valuation. Losses and costs are included in the same process. When performance is reflected in the product price, it can change the holding value and redemption quote without changing the number of ProductTokens held. ProductToken balances do not automatically rebase as prices change. Reward receipt, reinvestment and distributions follow the operating procedures of the connected strategy and product; holding a token does not by itself imply separate automatic execution. For products that make cash distributions, distinguish performance reflected in NAV from amounts paid separately.When Prices Apply
Immediate internal deposits and direct redemptions use the valid price or exchange basis at execution. If the price updates after a quote is retrieved, issuance or payout quantities may change. For OTC execution, check quote expiry and the agreed execution price and fees. For Standard Redemption, the product specification and relevant interface determine when the price is fixed. Distinguish products that fix the price at request from those that use a settlement valuation, and identify whether the amount shown at submission is estimated or fixed. Requests awaiting payment after tokens have been burned are tracked as outstanding payment obligations, separately from token holdings. A price feed supplies the values a vault uses in its calculations. Product operations connect source valuations, price publication and settlement so that published values reflect actual strategy performance and asset holdings. A price feed itself is not a guarantee of asset holdings.Understanding APY
APY expresses returns on an annual compounded basis. Its meaning depends on whether the displayed value is a product’s stated yield or an annualized measure of observed price changes. Annualizing price changes over a short period can produce a large figure.
APY is not a fixed payout rate or a guarantee of future performance. Price-based metrics should also be distinguished from dividend and distribution policies. A figure based only on annualized historical price changes should not be assumed to equal the return a user actually receives.