> For the complete documentation index, see [llms.txt](https://docs.lore.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lore.xyz/getting-started/understanding-equity-events/valuations.md).

# Valuations

### How Much Is Your Vault Worth? Cracking the Code on Vault Valuations

**The Formula:**

Imagine your Vault is a treasure chest. Its value is the sum of:

* **Shiny Coins (ETH & Tokens):** Market value of your Ethereum and ERC20 tokens (easy!).
* **Priceless Artifacts (NFTs):** Combined manual valuation of your unique NFTs (tricky, more below!).

**Valuation: A Collaborative Effort:**

* **Floor Tracking (Automatic):** We automatically track the "floor price" for your NFTs - the lowest asking price on marketplaces. This provides a starting point, but remember...
* **Manual Valuation (Priceless!):** You, the experts, know your NFTs best! Regularly propose adjustments to reflect their true worth, ensuring fair value for everyone's individual equity stake.

{% hint style="info" %}
**Why manual valuation for NFTs?** Unlike tradable tokens, each NFT is one-of-a-kind. Your group decides its worth based on factors like rarity, utility, and your expert judgment!
{% endhint %}

**Why It Matters:**

* Track the overall profit/loss and growth of the Group's assets.
* Know your value of your Group so you can fairly issue new equity when raising funds.
* Determine fair payouts when Members want to recieve liquidity for their equity stake.

**The Valuation Challenge:**

Unlike ERC-20 tokens, NFTs trade less frequently and often have unique features. This makes pinning down their exact value tricky.

{% hint style="success" %}
**Remember:**

* Accurate Vault Valuation ensures fair treatment for all members.
* Regular updates and active participation are key.
  {% endhint %}


---

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