# Pool Token Pricing

Piron pool tokens represent a direct claim on the **Net Asset Value (NAV)** of the underlying assets in a pool. The price of a token is determined by dividing the pool’s total NAV by the number of tokens outstanding.

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### How NAV Works

At any given time, the NAV reflects the total value of the pool’s holdings:

NAV= Market Value of Instruments + Cash Buffer + Accrued Interest − Fees

* **Market Value of Instruments**: T-bills, bonds, or other money market instruments held.
* **Cash Buffer**: Liquidity set aside to support redemptions.
* **Accrued Interest**: Yield earned but not yet matured or paid.
* **Fees**: Management and operational costs deducted from NAV.

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### NAV per Share (Token Price)

The **price of each Piron token** is simply:

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* When NAV increases as yield accrues → token price rises.
* When investors redeem → tokens are burned and NAV/share remains stable for others.
* At launch, token price starts at **1.0 (e.g., 1 USDC)**, and grows steadily with yield.

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### Daily Accrual

* NAV/share is updated continuously as instruments accrue yield.
* Investors see the token value rise daily, even if T-bills only mature at 90 or 180 days.
* This ensures **smooth and transparent yield accrual**, without sudden jumps at maturity.

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### Entry and Exit

* **Deposits**: New investors mint tokens at the current NAV/share.
* **Withdrawals**: Redeeming investors burn tokens and receive cash at the current NAV/share.

This guarantees **fair entry and exit** — everyone is treated equally based on real-time pool value.
