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Understanding Vault Metrics

Before depositing into a vault, it’s important to understand the key metrics displayed in the Orion app.

These metrics help you evaluate performance, risk, and suitability for your investment goals.

Total Value Locked (TVL)​

  • What it means: The total amount of assets currently deposited in the vault.
  • Why it matters: Higher TVL can indicate user confidence, but may also mean smaller relative returns if capacity is limited.

Net Asset Value (NAV)​

  • What it means: The value of one vault share - calculated as the total value of the vault’s assets (minus any liabilities) divided by the number of shares.
  • Why it matters: NAV is the reference point for performance, fee calculations, and what your share of the vault is worth at any time.

Annual Percentage Rate (APR)​

  • What it means: The projected annualized return based on the vault’s historical performance.
  • Why it matters: APR is an estimate - actual returns can vary depending on strategy performance and market conditions.

Asset Allocation​

  • What it means: The distribution of assets held by the vault.
  • In transparent vaults: Visible in real time.
  • In private vaults: Confidential.

Rebalancing Frequency​

  • What it means: How often the vault adjusts its asset allocation to match the strategy.
  • Why it matters: More frequent rebalancing can keep the portfolio aligned with its target allocation, but may incur higher trading costs.

Performance History​

  • What it means: Historical returns and volatility over different timeframes (e.g., 7d, 30d, 1y).
  • Why it matters: Past performance can give insight into how the strategy behaves in different market conditions, but is not a guarantee of future results.

Fees​

  • Performance Fee: A percentage of profits taken by the curator when the vault is profitable.
  • Management Fee: An annualized fee taken regardless of performance to cover strategy maintenance.
  • Fee Model: The rule set that defines how performance fees are charged (e.g., absolute return, hard hurdle, soft hurdle, or high water mark).
  • Why it matters: Fees and fee models impact net returns and when performance fees are paid. For visuals and detailed examples, see Vault Fees.

Risk Profile​

  • What it means: An indication of the vault’s risk level based on its asset mix and strategy.
  • Why it matters: Choose a risk profile that aligns with your investment horizon and tolerance.

Quick Tip​

Always evaluate vault metrics in context - a high APR might look attractive, but consider TVL, risk profile, and historical performance before investing.