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

# Share Token & NAV

> How Berafarm mints and prices non-rebasing tranche share tokens, how their prices diverge under the waterfall, and how fees accrue in shares.

Every position in a Berafarm vault is represented by a share token. This page explains how shares are minted and priced, how the two tranche tokens differ, and how to verify your position's value on-chain.

### Two tokens per vault

Each vault issues **two share tokens, one per tranche**:

| Token            | Tranche           | Profile                                                |
| ---------------- | ----------------- | ------------------------------------------------------ |
| **\[BF-sToken]** | Stable Yield Farm | Steady share-price growth, protected from first losses |
| **\[BF-aToken]** | Alpha Yield Farm  | Amplified share-price movement, absorbs first losses   |

Both tokens are claims on the **same pool of strategy positions,** there is one vault, one set of strategies, one pool of capital. What differs is how each period's gains and losses are allocated between the two tranches.

***

#### Share Pricing

Berafarm shares are **non-rebasing,** your token balance never changes on its own. What changes is the **share price,** how much of the underlying asset each share redeems for.

* At deposit, you mint `deposit ÷ your tranche's share price` shares.
* At withdrawal, you redeem `shares × your tranche's share price` of the underlying.
* Share prices start at 1.0 and move as the vault performs.

**From live transactions:** a net deposit of 1.13299 HONEY minted 1.12733 shares (share price ≈ 1.005); a later deposit of 0.10355 HONEY minted 0.10224 shares (share price ≈ 1.013). Prices above 1.0 reflect yield already accrued, new depositors buy in at current NAV and never dilute existing holders.

***

#### Diverging prices are the waterfall

Here is the key mental model: **the risk tranching lives entirely in the share prices.**

Each period, the vault's total gain or loss is split between the tranches by the waterfall rules. The Stable token's share price is designed to grind steadily upward toward its target yield. The Alpha token's share price captures the residual, it rises faster in strong periods and falls first in losing periods.

This means the entire tranche mechanism is publicly auditable: chart the two share prices over time and you are looking directly at the waterfall in action.

***

#### Transferability

Share tokens are standard ERC-20s and fully transferable, you can move a position between your own wallets or transfer it to someone else, and the receiving address holds the position in that same tranche.

There is no in-place conversion between tranches: moving from Stable to Alpha (or back) means withdrawing from one and depositing into the other, paying the standard exit and entry fees if any.

***

### Fee accrual in shares

Ongoing protocol fees are collected **by minting shares to the treasury**, not by removing assets from strategies. On-chain, this appears as periodic mints of both tranche tokens to the fee address.

Two consequences worth understanding:

1. **Capital never leaves the strategies to pay fees:** your deposit stays fully deployed at all times.
2. **The treasury holds the same exposure you do:** protocol fee revenue rises and falls with vault performance, keeping incentives aligned.

Exact rates are on the Dapp page.