Vault mechanics
This section explains the economics and constraints behind the basic vault guides. It is written for investors who want to inspect assumptions, rather than developers looking for an SDK.
Start with the accounting
NAV and share pricing explains what the vault recognises as value and why entry and exit prices can differ. Yield allocation explains the premium between tranches. Losses and recovery explains negative results and incident states.
Then examine the exit
Coverage and limits connects the Junior cushion to admission and exit constraints. Liquidity and queues distinguishes a valuable position from spendable cash, including what happens when external exits wait.
Finally examine the strategy and control
Allocations and adapters follows exposures through their investment paths. Governance and permissions explains the powers that can change or restrict those paths.
The limit engine is a separate strategy-review layer. Its best-practice defaults are not interchangeable with limits enforced by the on-chain vault.
Use due diligence as a reading checklist before assessing a particular vault. Your conclusion should depend on its current conditions and evidence, not merely the generic design described here.