> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sporttoken.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Share price

# Share Price

The share price represents the USDC value of each vault share. It fluctuates based on the vault's performance and is the key metric for LP returns.

## How Share Price Works

When you deposit USDC, you receive shares based on the current share price:

```
Shares Received = Deposit Amount / Share Price
```

When you withdraw, your shares are redeemed at the current price:

```
USDC Received = Shares × Share Price
```

## Share Price Calculation

The share price is calculated in real-time:

```
Share Price = LP Equity / Total Shares

Where:
LP Equity = Total Assets - Net Risk - Held Stakes
```

### Components

| Component        | Description                                              |
| ---------------- | -------------------------------------------------------- |
| **Total Assets** | USDC in vault + Aave deposits                            |
| **Net Risk**     | Probability-weighted expected payout to bettors          |
| **Held Stakes**  | Counter parlay stakes (held but excluded from LP equity) |
| **Total Shares** | All outstanding LP shares                                |

## What Moves Share Price?

<CardGroup cols={2}>
  <Card title="Increases Share Price" icon="arrow-up">
    * Fees collected from bets
    * Bettors losing (favorable P\&L)
    * Aave yield accrual
  </Card>

  <Card title="Decreases Share Price" icon="arrow-down">
    * Large payouts to winners
    * Unfavorable P\&L
  </Card>
</CardGroup>

### Neutral Events

These do NOT change share price:

* New LP deposits (receive shares at current price)
* LP withdrawals (redeem at current price)
* Bet placement (assets and liabilities change equally)

## Mark-to-Market (MTM) Valuation

The vault uses **real-time probability-weighted** valuation:

```
Expected Payout = Σ (Position Payout × Current Probability)
Net Risk = Total Liabilities - Expected Payout
```

This means:

* If odds shift in favor of bettors → Net Risk increases → Share price drops
* If odds shift against bettors → Net Risk decreases → Share price rises

<Note>
  Share price updates continuously based on live odds feeds, not just when bets settle.
</Note>

## Example

**Scenario: \$1,000,000 vault with 1,000,000 shares**

Initial state:

* Share price: \$1.00
* Total assets: \$1,000,000
* Net risk: \$0

After a day of betting:

* Fees collected: \$3,000
* Net favorable P\&L: \$2,000
* New total assets: \$1,005,000

New share price:

```
$1,005,000 / 1,000,000 = $1.005
```

LPs earned **0.5% return** that day.

## Checking Share Price

On the LP page, you can see:

* **Current Share Price** - Real-time value
* **Your Shares** - How many you own
* **Your Value** - Shares × Share Price
* **Historical Performance** - Share price over time

## Important Considerations

<Warning>
  Share price can decrease if bettors win big. LP returns are not guaranteed and depend on overall betting outcomes.
</Warning>

### Timing Deposits/Withdrawals

* **Deposit when** share price is stable or you believe the vault will profit
* **Withdraw when** you want to lock in gains or reduce exposure
* Share price at transaction time determines your rate

### Long-Term View

Over time, the fee structure and house edge typically favor LPs:

* 0.3% base fee on all volume
* Dynamic fees that scale with risk
* Diversification across thousands of markets

However, short-term variance from large winners can cause temporary drawdowns.