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Token management

How share pricing works in Centrifuge and why it matters for your investors.

Why pricing matters​

Your share token's price determines:

  • What investors pay when they deposit
  • What investors receive when they redeem
  • The value investors see in their wallets

Unlike traditional funds where you hold "units," Centrifuge uses price-accruing tokens. An investor's token balance stays constant, but the value per token increases as your fund grows.

Example:

  • Investor buys 10,000 tokens at 1.00=1.00 = 10,000 invested
  • Fund grows, NAV increases
  • Token price rises to $1.10
  • Investor still holds 10,000 tokens, now worth $11,000

How NAV and price connect​

NAV (Net Asset Value) is the total value of all assets backing your share class.

Price per share is calculated automatically:

Price per Share=Total NAVTotal Share Supply\text{Price per Share} = \frac{\text{Total NAV}}{\text{Total Share Supply}}

When you update NAV, the system recalculates the price. This new price is used for all subsequent investments and redemptions.

When to update NAV​

Update frequency depends on your underlying assets:

Asset typeTypical frequency
Liquid assets (treasuries, public securities)Daily
Semi-liquid (private credit, loans)Weekly
Illiquid (real estate, infrastructure)Monthly or quarterly

Always update NAV before:

  • Processing pending investments (so investors get fair pricing)
  • Processing pending redemptions (so payouts reflect current value)

How to update NAV​

  1. Calculate your current NAV

    • Value all underlying assets
    • Add accrued income (interest, dividends)
    • Subtract fees and expenses
    • Sum to get total NAV

  2. Update in the app

    • Navigate to NAV
    • Click Update NAV
    • Enter total NAV or target price per share
    • Review the price change percentage
    • Submit transaction
Update NAV modal
  1. Wait for propagation
    • Hub chain (Ethereum) updates immediately
    • Spoke chains (Base, Arbitrum, etc.) update within ~30 minutes
NAV overview

Multi-chain pricing​

Your pool may operate across multiple networks. When you update NAV:

  • You update once on the hub chain
  • The new price propagates automatically to all spoke chains
  • All investors see the same price regardless of which network they're on

This ensures fair, consistent pricing across your entire investor base.

Price and order processing​

Investment flow​

Investment flow

Investor receives: 10,000 / 1.05 = 9,523 shares

Redemption flow​

Redemption flow

Investor receives: 5,000 × 1.10 = 5,500 USDC

Token types and pricing behavior​

Price-accruing tokens (default)​

  • Token balance stays constant
  • Value increases as price rises
  • Most common for RWA funds

Rebasing tokens (if configured)​

  • Token balance increases over time
  • Price stays constant (usually $1.00)
  • Used for some yield-bearing products

Your token type is set at pool creation.

Token settings

Best practices​

Before updating​

  • Verify your NAV calculation is accurate
  • Check for any pending orders that will process at the new price
  • Review the price change - large swings may need explanation to investors

Consistency​

  • Update on a regular schedule (same time, same day)
  • Document your valuation methodology
  • Keep records for audit purposes

Communication​

  • Large price changes may warrant investor communication
  • Consider publishing NAV updates to build transparency

Common scenarios​

Price dropped - should I still update?​

Yes. Accurate pricing protects both you and your investors. Delaying updates to hide losses creates bigger problems later.

Can I update NAV multiple times per day?​

Yes, but typically unnecessary. Each update is a transaction with gas costs.

What if I made a mistake?​

Update NAV again with the correct value. The most recent update is what counts.

Pending orders and NAV timing​

Orders are processed at the price when you issue/revoke shares, not when the investor submitted their request. This gives you control over pricing timing.