# Pricing

Token prices evolve in line with the performance of the underlying RWA strategy. While appreciation in asset value increases NAV and token price, adverse market conditions or elevated fees may reduce returns and result in temporary declines.

For strategies with fixed maturities, redemption of underlying assets at par increases NAV, which may positively impact token price and improve liquidity available for withdrawals.

Each liquid token represents a proportional claim on the strategy’s net assets. Accordingly, changes in asset value or expenses are reflected uniformly across all tokens.

When a user deposits $USC, the system converts the deposit amount into liquid tokens using the current token rate:

* A higher token rate results in fewer tokens minted per unit of $USC.
* A lower token rate results in more tokens minted per unit of $USC.

When a user redeems liquid tokens, the system converts tokens back into $USC using the current token rate:

* A higher token rate increases the $USC value received per token.
* A lower token rate reduces the $USC value received per token.

### Oracle Infrastructure

The protocol relies on custom price oracles that are fully compatible with Chainlink's *AggregatorV3Interface* to deliver weekly price updates for liquid Real-World Assets (RWAs) and less frequent updates for illiquid assets, depending on the market sector. This interface provides standardized functions (e.g., *latestRoundData()* for current prices and *getRoundData()* for historical data) to ensure unified integrations and use battle-tested framework.

Oracle pricing supports accurate NAV calculations and reduces exposure to manipulation.

Pricing behavior is configurable by RWA type:

* Tokenized fund strategies may allow token prices to fall below their initial reference value.
* Market-referenced RWAs, such as pre-IPO instruments, may operate within broader price ranges reflecting market-derived valuations.

**Price Update Framework**

Updates are restricted to authorized operators or administrators via role-based access control.

Weekends and recognized market holidays are treated as non-operational days, with updates occurring on the next business day.

To ensure pricing integrity:

* All deposits and redemptions are subject to oracle freshness checks.
* Transaction executions revert if the oracle price exceeds a configured maximum age (e.g., 5 or 7 days).


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