Worked Examples

These examples use consistent terminology:

• vault weight / user share = the user's percentage of current vault equity

• principal basis = accounting basis used to calculate realized PnL

• realized value = stable proceeds actually recovered from the pro-rata reduction of positions

Example 1: User exits at 30% vault share

Assume:

• vaultTotalEquityNow = 1,000

• userShareValueNow = 300

• userWeightNow = 30%

Open positions:

• Position A

• Position B

• Position C

Withdrawal behavior

The protocol reduces:

• 30% of position A

• 30% of position B

• 30% of position C

The stable proceeds from those reductions become the user's realizedValueForUser.

Then the protocol:

• creates an ExitTicket

• sets unlockTime = now + 7 days

• excludes the user immediately from vault PnL and epoch rewards (including the current epoch)

Example 2: Positive realized PnL on withdrawal

Assume:

• principalBasisForUser = 100 USDC

• realizedValueForUser = 120 USDC

Calculation:

• realizedPnlForUser = 120 - 100 = +20 USDC

Illustrative settlement flow (protocol rules and fees may be implementation-specific):

• capital component in stable: 100 USDC

• profit component: 20 USDC

• profit component may be converted to AIR3

• AIR3 profit split:

  • 50% buyback allocation

  • 50% user allocation

User settlement:

• stable capital return

• AIR3 equivalent for the user portion of positive realized PnL

Example 3: Negative realized PnL on withdrawal

Assume:

• principalBasisForUser = 100 USDC

• realizedValueForUser = 85 USDC

Calculation:

• realizedPnlForUser = 85 - 100 = -15 USDC

Settlement outcome:

• payoutStable = 85 USDC (claimable after the 7-day delay)

• AIR3 reward = 0

• the loss is absorbed by the user's allocation through the lower realized value

Example 4: Withdrawal request during an active epoch (anti double-counting)

A user sends WithdrawRequest while an epoch is still active.

Protocol behavior:

• the vault reduces the user's pro-rata share immediately

• an ExitTicket is created

• the user is excluded immediately from active PnL participation

• the user is excluded from current-epoch reward allocation

Result:

• the user is settled through the withdrawal path only

• the user does not receive a second allocation via epoch settlement

Example 5: Large concurrent exits (90% of vault equity requests withdrawal)

If users representing 90% of vault equity request withdrawal in a short window:

• the protocol attempts to reduce approximately 90% of each open position pro-rata

• the remaining active vault continues with a materially smaller position base

• realized values for exiting users depend on execution quality, market conditions, fees, and slippage during the unwind

• temporary processing or execution delays may occur under stressed conditions

• implementation-specific safeguards can trigger controlled unwind modes, batching, or temporary limits

This example highlights an operational stress case, not a change to the core accounting model.