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

# Understanding Returns

> Share price, NAV, performance tracking, and how fees affect your returns

# Understanding Your Returns

Your investment in a Tilt vault is represented by **shares**. The value of your shares changes as the fund's portfolio performs.

## Share Price

The share price is the Net Asset Value (NAV) per share:

```
share_price = total_assets / total_shares
```

Where `total_assets` = all held token values (at oracle prices) + idle tiltUSDC.

* **Share price goes up** when the portfolio appreciates
* **Share price goes down** when the portfolio declines
* **Share price is diluted** slightly by management and performance fees

## Calculating Your P\&L

Your profit or loss is:

```
current_value = your_shares × current_share_price
profit_loss = current_value - total_deposited + total_withdrawn
```

The vault dashboard shows your current position value and returns.

## How Fees Affect Returns

### Entry Fee Impact

The entry fee means you start slightly below break-even. A 0.30% entry fee on a 1,000 tiltUSDC deposit means you effectively invested 997 tiltUSDC.

### Management Fee Impact

Management fees accrue continuously via share dilution. A 0.50% annual management fee means your share of the vault shrinks by \~0.50% per year, all else equal.

### Performance Fee Impact

Performance fees are only charged on gains above the high-water mark. If the fund grows 20% and the performance fee is 15%, roughly 3% of total AUM is taken as fees (15% × 20%).

### Exit Fee Impact

When you withdraw, 0.50% (default) is deducted from your gross withdrawal amount.

### Net Return Example

```
Deposit: 10,000 tiltUSDC
Entry fee (0.30%): -30 → Net invested: 9,970

Fund grows 20% over 1 year:
  Gross portfolio value: ~11,964
  Management fee (0.50%): ~-60 (via share dilution)
  Performance fee (15% of gains): ~-299 (via share dilution)
  Net portfolio value: ~11,605

Withdraw all:
  Exit fee (0.50%): ~-58
  Net received: ~11,547

Total return: ~15.5% (vs. 20% gross fund return)
```

## Comparing Strategies

When comparing two vaults:

* **Don't just look at gross returns** — account for fees
* **Check the share price history** — a smooth uptrend is better than volatile spikes
* **Look at the fee structure** — a fund returning 18% with 0.50% management is better than one returning 20% with 2.00% management
* **Consider drawdowns** — how much did the fund lose in its worst period?

<Tip>
  The share price chart on the vault dashboard is the single best indicator of after-fee performance. It already accounts for all fee deductions.
</Tip>