# 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](/concepts/yield/) explains rate labels; the [vault guide](/concepts/vaults/) explains assets and shares.