Definition
A NAV oracle is a data feed that publishes the reported net asset value of a fund, portfolio or tokenized asset to a blockchain or another software system.
What the feed reports
Net asset value is the value of an investment vehicle's assets minus its liabilities. Per-share NAV divides that amount by the number of outstanding shares or tokens.
An on-chain system can use a NAV feed when calculating subscriptions, redemptions, collateral values or portfolio reports. The feed may relay a value calculated by an issuer, administrator, valuation agent or another defined source.
What to verify before relying on it
A NAV update is only as useful as its source, valuation method and timestamp. Illiquid assets may rely on models, write-down schedules or administrator estimates rather than continuous market prices.
Check who calculates the NAV, how often it updates, what happens when an update is late and whether contracts pause when the value becomes stale.
What it does not mean
A NAV oracle is not necessarily a market-price oracle, proof-of-reserves feed or independent audit. It reports a valuation input according to a specified methodology.
Where this term fits
Questions about nav oracle
- Is NAV the same as a token market price?
- No. NAV comes from the vehicle assets and liabilities. A token secondary-market price can trade above or below that value.
- Does a NAV oracle prove that the underlying assets exist?
- No. Asset verification or reserve reporting requires separate evidence. A NAV feed primarily communicates a valuation.
- How often should a NAV oracle update?
- It depends on the product and underlying assets. The feed documentation should disclose its update policy, timestamp and stale-data controls.
See these concepts in context
Review the Fensory MCP connection, tools and account controls.