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

# Where Vault Returns Come From

> How holders of Cargo vault shares earn: the discount to NAV at purchase, NAV moves, Genesis lock bonus shares and the Rotate cycle. Plus how to track your position.

Cargo vault shares do not pay a coupon. A share is one unit of a physical asset. Its value is NAV, and what you earn is the gap between what you paid and what you get back, plus any bonus shares. The figures below are the Genesis Vault's (cvCOCOA, West African Grade 1 cocoa).

## Sources of Return

> [accordion] The Discount to NAV
>
> New shares are only ever sold below NAV: on the Genesis curve (9.2% to 3.0% below in the Genesis Vault), then at each batch's clearing discount. Redemption returns NAV − 0.10%.

> [accordion] NAV Moves
>
> NAV follows the asset's reference price, in USD (for cvCOCOA, ICE London Cocoa). It can rise or fall. The discount you bought at is your cushion: NAV can fall by about that much, less the redemption fee, before the position is below cost. Market makers and sophisticated holders can hedge on the reference market (for cvCOCOA, 10,000 shares ≈ one 10 t ICE London Cocoa lot).

> [accordion] Genesis Lock Bonus
>
> In the Genesis Vault, Genesis shares locked for **90 days** receive **+1.0%** bonus shares; locked for **180 days**, **+2.5%**.

> [accordion] Rotate
>
> Buy in a batch below NAV, pre-sell the same units to an offtaker at NAV, redeem, and bid again. Each turn (12 days in the Genesis Vault) earns roughly the clearing discount less 0.35% of fees. The discount is set by the auction and will compress as more capital arrives.

## What You Do Not Pay

* No management fee and no storage fee for holders. Storage, collateral management and insurance are paid by originators at cost.
* No fee on the Genesis curve.
* Fees apply only when you trade or exit: 0.25% per side in a batch, 0.10% on redemption, 1.0% through the bridge. See the [fee schedule](https://docs.cargotrading.xyz/ecosystem/protocol.md#fee-schedule).

## Tracking Your Position

| Data | Where | Frequency |
| :- | :- | :- |
| NAV | On-chain, after the reference price publishes | Daily |
| iNAV | API and WebSocket; on-chain during reference-market hours | Every minute; every 15 minutes on-chain |
| Batch tape | Clearing price, discount, volume, bid-to-cover, lot IDs | Each batch |
| Lot registry | Lot ID, quantity, grade, receipt | Per lot |
| Stock report | Collateral manager's report, hashed on-chain | Weekly |
| Redemption queue and bridge capacity | Live | Continuous |

> [!NOTE]
>
> Genesis Vault figures are at prices of 9 Oct 2026, before price moves. They are illustrations, not forecasts, and they are never annualised. Capital is at risk. See [Returns and NAV](https://docs.cargotrading.xyz/faq/vault-apy.md).


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