> For the complete documentation index, see [llms.txt](https://docs.kpk.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kpk.io/funds/infrastructure/architecture/onchain-accounting.md).

# Onchain Accounting

Verifiable, manipulation-resistant NAV for each fund, composed from onchain balances and prices in one contract per chain.

KPK's onchain accounting system produces a verifiable, manipulation-resistant **Net Asset Value (NAV)** for each fund by composing three layers of onchain infrastructure into a single contract, the **NAV Calculator**, deployed once per chain.

{% hint style="info" %}
Each fund's NAV is computed independently on every chain where it operates, then aggregated offchain into a single global figure. Every computation input, balances and prices, is read from onchain sources and is independently verifiable.
{% endhint %}

### How it fits together

The NAV Calculator inherits two libraries of behaviour, **Balances** and **Prices**, and combines them into the NAV layer.

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#### Balance layer

For each tracked asset, the NAV Calculator collects the account's holdings from a set of registered **balance adapters**. A built-in `ERC20DefaultBalanceAdapter` reports plain wallet balances; protocol adapters report positions that are not visible as a simple `balanceOf` (Morpho supply shares, Aave aTokens, staked LP, reward accruals, …). Each adapter returns balance-only **`PositionBalance`** entries tagged with a machine-readable identity (the `protocolBrand`/`protocolId`/`protocolSubId` taxonomy, `positionId`, `positionKind`, `isLocked`).
{% endstep %}

{% step %}

#### Price layer

Each balance is priced by the asset's single **primary price feed** (Chainlink, Redstone, API3, or a custom composite adapter). Any additional trustworthy source is a **monitor feed**, read only to check the primary for divergence; never to price NAV. If the primary is stale, the asset is added to `NAV.stalePriceAssets` and the reading is flagged unreliable; if the primary diverges from a monitor (or, for stablecoins, strays from $1) beyond tolerance, the asset is added to `NAV.irregularPriceAssets` as a soft alert. If monitors are configured but **none of them was readable**, the divergence check could not run at all, and the asset is added to `NAV.monitorsUnhealthyPriceAssets`, so a clean `irregular` flag is never mistaken for a check that actually happened.
{% endstep %}

{% step %}

#### Aggregation layer

On each chain, the NAV Calculator prices every position and sums them into a **chain-local NAV** (`int256`, in the quote asset's decimals, 8 for USD). Debt positions subtract. The offchain **NAV Worker** collects per-chain values and sums them into the **global NAV** used for subscriptions and redemptions.
{% endstep %}
{% endstepper %}

<figure><picture><source srcset="/files/LaTCrsqSvhZBxAxkeBaS" media="(prefers-color-scheme: dark)"><img src="https://1699303810-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUsQM4bzcmOPSgkWddkeN%2Fuploads%2FyfvhUMazsxRaTpwRV5RX%2F02-nav-pipeline.png?alt=media&amp;token=0c107e30-8ba3-462a-afa4-a0dc463ba07c" alt="Flowchart: getAccountNav gathers balance-adapter positions, prices each, aggregates a per-chain NAV, and an off-chain worker sums healthy chains into a global NAV."></picture><figcaption><p>NAV computation pipeline: balance adapters report positions, prices value them, the per-chain NAV is aggregated, and the offchain worker sums chains into the global NAV.</p></figcaption></figure>

### Architecture

* A single **`NAVCalculator`** is deployed per chain as a UUPS proxy at a canonical CREATE2 address (identical across chains). It is **fund-agnostic**, one instance prices any account on that chain.
* It inherits the `Prices` and `Balances` registries, and delegates heavy registry mutations and read loops to external libraries (`NAVRegistryLib`, `PriceFeedLib`) to stay under the EIP-170 contract-size limit.
* Human-readable labels come from the NAV Calculator's own **verbose read methods** (`getAccountNavVerbose` / `getAccountPositionsVerbose`); the label-enrichment path is inlined into the contract rather than split into a separate lens. There is no standalone lens contract.
* Chains where the Funds hold positions: **Ethereum, Optimism, Arbitrum, Base, Gnosis, BSC, Polygon, Arc**; the NAV is also live (canonical layer only) on 17 more chains. See [Deployment addresses](/funds/infrastructure/architecture/onchain-accounting/deployment-addresses.md).
* **License:** the contracts are released under **BUSL-1.1** (licensor KPK; converts to GPL-2.0-or-later on 2030-07-01), with a GPL-2.0-or-later exception for the bundled Uniswap V3 math libraries.

### Key contracts

| Component       | Contract                             | Purpose                                                                                                                                                      |
| --------------- | ------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| NAV Calculator  | `NAVCalculator` (UUPS proxy)         | Registers assets, feeds, and adapters; prices balances; returns chain NAV and positions, plus labelled `*Verbose` reads for dashboards                       |
| Default adapter | `ERC20DefaultBalanceAdapter`         | Reports plain wallet balances for every registered ERC-20 + the native token on its inclusion list (tokens whose address a meta-adapter claims are excluded) |
| Balance adapter | Various (plain & meta)               | Report protocol positions as balance-only `PositionBalance` entries                                                                                          |
| Price feed      | Chainlink / Redstone / API3 / custom | Return a price and staleness signal per asset                                                                                                                |

### Explore the section

<table data-view="cards"><thead><tr><th></th><th></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>Contracts</strong></td><td>The NAV Calculator; the contract you read from.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/contracts.md">Contracts</a></td></tr><tr><td><strong>Concepts</strong></td><td>Position identity and the stale-price / sequencer model.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/concepts.md">Concepts</a></td></tr><tr><td><strong>Price feeds</strong></td><td>The custom feeds and how prices are resolved.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/price-feeds.md">Price feeds</a></td></tr><tr><td><strong>Balance adapters</strong></td><td>The default + singleton adapters that locate positions.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/balance-adapters.md">Balance adapters</a></td></tr><tr><td><strong>Meta balance adapters</strong></td><td>One adapter per protocol, serving many instances.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/meta-balance-adapters.md">Meta balance adapters</a></td></tr><tr><td><strong>Assisted balance adapters</strong></td><td>Permissionless, owner-fed adapters for positions not discoverable onchain.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/assisted-balance-adapters.md">Assisted balance adapters</a></td></tr><tr><td><strong>Attested balance adapters</strong></td><td>Proof-verified adapters for positions the chain can verify but not value.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/attested-balance-adapters.md">Attested balance adapters</a></td></tr><tr><td><strong>Deployment addresses</strong></td><td>Per-chain contract addresses for each chain.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/deployment-addresses.md">Deployment addresses</a></td></tr><tr><td><strong>Code examples</strong></td><td>Read NAV, positions, and prices in TypeScript / Python.</td><td><a href="/funds/infrastructure/architecture/onchain-accounting/code-examples.md">Code examples</a></td></tr></tbody></table>


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