How value can accumulate
Distinguish the vault's economics from the formulas used in reporting and product projections.
When returns remain in a strategy, the position can continue participating with a larger asset value. The exact mechanism depends on the lending market, vault accounting and any reinvestment behavior in the deployed strategy.
The customer view
Keep principal, current value and accrued yield understandable. If the position is share-based, a changing asset value can be reflected in the asset value of the shares. The share count and asset value should be displayed as distinct quantities.
The reporting calculation
The Partner API's position reporting uses an accrual calculation based on principal, rate and elapsed time. This reporting model should not be described as proof of a particular reinvestment frequency or an onchain settlement amount.
A projection in your product is a separate calculation. State its assumptions and keep its output separate from the customer's actual available balance.
What to confirm for a deployment
Confirm which yield mechanisms are active, how fees affect the position, and which onchain values are authoritative for redemptions. Use that configuration to explain the product, rather than promising a fixed compounding schedule for every vault.
The yield guide explains rate labels; the vault guide explains assets and shares.