# Deposits

When a user allocates funds to a vault, they are issued vault shares corresponding to the increase in Net Asset Value that they contribute to the vault. The following sequence of actions takes place:
1. 1.
User initiates a deposit. This is expressed in USDC
2. 2.
The vault calculates the Net Asset Value: NAV = SUM(asset_i * price_i)
3. 3.
Your vault share % is calculated: Share = Deposit/(Deposit+NAV)
4. 4.
New vault shares are issued to the depositor s.t.:
$Share = NewlyIssued/(NewlyIssued + Outstanding)$
so that the amount of newly issued shares:
$NewlyIssued = Share*Outstanding/(1-Share)$
As a depositor, I get the amount of vault shares corresponding to the USDC value of my deposit, relative to dollar amount of vault Net Asset Value
Example:
1. 1.
Bob wants to deposit 100 USDC into a vault of their choice
2. 2.
The vault currently has a Net Asset value of 1000 USDC
3. 3.
Bob’s share would be: Share = 100/(100+1000) = 0,0909 or 9,09%
4. 4.
Suppose that the vault had 500 shares outstanding. This would mean that:
NewlyIssued = 0,0909*500/(1-0,0909) = 49,99 which is the number of new vault shares issued to Bob