> For the complete documentation index, see [llms.txt](https://docs.midas.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.midas.app/transparency/pricing-of-the-mtoken.md).

# Pricing of the mToken

The NAV (Net Asset Value) per mToken represents the current value of one mToken expressed in its base currency, which can include USD, BTC, ETH, or any other currency as stated in the pricing supplement of the specific product. 

At any point in time, the formula to price the mToken is as follows:

<p align="center"><span class="math">\text{mToken Price (NAV)} = \Large \frac{\text{Total Value of the Underlying Portfolio}}{\text{Number of mTokens outstanding}}</span></p>

<p align="center"></p>

> :warning: <sub>At launch, the mToken is typically initiated at a NAV of 1.0 unit of its base currency. However, this does not imply any form of pegging or flooring mechanism relative to that base currency. The mToken is an investment product that can increase or decrease in value, depending on the underlying performance of the reference portfolio.</sub>

#### The NAV Update Process

The NAV update process involves a detailed assessment and pricing of all assets held within the strategy. This process follows a regular cadence, which can range from daily to weekly or longer, depending on the specific product.&#x20;

Midas maintains a rigorous oversight structure by separating portfolio management from final pricing validation. While strategy managers provide the primary valuation data, Midas performs an internal review to cross-reference all figures against independent data sources and valuation approaches. Our team deducts fees accrued since the last price update, and applies rigorous sanity checks to ensure price integrity, for instance, verifying that the current APY aligns with historical and projected performance ranges.&#x20;

This multi-layered process mitigates conflicts of interest and ensures that portfolio pricing reflects objective market reality.

#### Onchain Verification

Once this independent assessment is complete, the [Oracle Architecture](/transparency/oracle-architecture.md) further enforces a tolerance check to prevent large deviations and protect investors. Each price update is initiated from a secured backend with additional safety checks, and reviewed by at least two trained co-signers from the Midas team. Finally, to provide maximum transparency, the [Midas Attestation Engine](/transparency/the-midas-attestation-engine.md) enables users to independently audit and verify NAV valuations at any time.

> :warning:<sub>The Midas Attestation Engine is currently being rolled out and may not be available for all products yet.</sub>&#x20;

#### Frequently Asked Questions

<details>

<summary><strong>Why might NAV publication times occasionally vary?</strong></summary>

<sup>*To ensure the highest level of accuracy, the NAV update process can occasionally take additional time. If we receive third-party reports or data points with a delay, or if we require further clarification during their verification, NAV publication is paused until all figures are perfectly aligned. This is a standard part of our operational workflow designed to ensure that the published NAV is always strictly factual and reliable.*</sup>

</details>

<details>

<summary><strong>How does Midas protect investors during exceptional market conditions or data anomalies?</strong></summary>

<sup>*In the rare event that a reliable NAV cannot be immediately established, such as during temporary data unavailability or broader market pricing anomalies, Midas has strict safeguards in place to protect the integrity of the token.*</sup>

<sup>*To prevent processing transactions at inaccurate prices, a protective "Market Disruption Event" may be declared. During this time, the valuation date and associated redemptions are paused until a precise NAV can be verified. This protective measure ensures equitable treatment across all token holders: by halting payouts at potentially incorrect valuations, we preserve the true proportional value of the portfolio for both exiting and remaining investors. Please refer to the product documentation for more details on Market Disruption Events.*</sup>

</details>


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