> For the complete documentation index, see [llms.txt](https://docs.ensemble.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ensemble.io/start-here/how-vault-shares-work.md).

# How vault shares work

Understand how USDC becomes vault shares, how share value changes, and how redemptions return USDC.

A share records your interest in a vault. Keep track of two numbers: how many shares you own, and how much USDC each share is worth. The share count can stay the same while the value changes.

## Deposit assets and receive shares

A deposit exchanges USDC for newly created shares at the price calculated when the transaction runs. The vault deducts any deposit fee first, then converts the remaining USDC into shares.

For example, a $100 deposit with a 0.1% fee leaves $99.90 to buy shares. The number of shares depends on the vault's price at execution. An approval alone does not make this exchange; the deposit must complete successfully.

## Understand share value

Net asset value, or NAV, is the value the contract attributes to shareholders after recognized fees and reserves. NAV per share is the contract's price for one whole share.

Trading gains or losses, funding payments, fees, and execution costs can change that price. The contract also includes fixed accounting offsets that matter most when the vault is small. Use its reported price for a quote. See [NAV and share accounting](/how-it-works/nav-and-share-accounting.md).

## Understand what you own

Your fraction of the outstanding shares represents approximately the same fraction of the vault's net assets. The accounting offsets and rounding affect the exact transaction value.

Shares are generally transferable. Once permanent emergency withdrawals are enabled, transfers freeze and each holder has a separate one-time claim.

## Redeem shares for USDC

A normal redemption burns the shares you choose and pays USDC after any withdrawal fee. It must fit within the current transaction limits and the cash available on HyperEVM.

If the requested amount cannot be paid now, the transaction reverts. It does not create a withdrawal queue. Capital used for trading may need to return before a later redemption can succeed.

## Read the estimate and the available amount

An estimate tells you what your shares are worth under the observed state. Capacity tells you how much you can transact now. They answer different questions.

Check both in the application before signing. The final result comes from the executed transaction, and another transaction or state change can affect it after the estimate was read.

## Next steps

Read [Fees and caps](/how-it-works/fees-and-caps.md) for costs and limits, and [Liquidity and redemptions](/safety/liquidity-and-redemptions.md) for withdrawal availability.