# Tokenization

When you invest in a vault, you receive vault-specific tokens that represent your share of the vault. For example, if you deposit into a vault named "Alpha", you receive $**Alpha-STZ** tokens. These tokens are yield-bearing assets that increase in value as the vault generates yield.

### Price Per Share Model

The value of your position in the vault is determined by the price of your $X-STZ token which act as a **Price Per Share (PPS).**

**Formula:**

<pre><code><strong>$X-STZ Price = Total Vault Assets (USD) ÷ Total Shares Outstanding
</strong></code></pre>

As the vault generates yield, the total assets increase, causing the PPS to rise. This means your tokens become more valuable over time, reflecting the vault's performance.

### Security Features

**Rounding Down + 0.1% Fee Redistribution**\
To protect the vault from rounding errors and ensure fairness, Stazys uses a conservative rounding mechanism:

* When calculating shares for deposits or withdrawals, values are **rounded down** to prevent over-issuance
* A **0.1% fee** is applied to all redeem operations
* This fee is **redistributed back into the vault**, benefiting all shareholders by slightly increasing the vault's assets

This mechanism ensures that the vault's net asset value remains accurate and protected from arbitrage and rounding exploits.

### Mint Process (Depositing) Exemple :

1. Current PPS: $1.10
2. You deposit: $1,000 USDC
3. After 0.1% fee: $999 USDC
4. Shares received: $999 ÷ $1.10 = 908.18... → **908 shares** (rounded down)
5. You receive: 908 Alpha-STZ tokens

### Redeem Process (Withdrawing) Exemple :

1. Current PPS: $1.15
2. You redeem: 1,000 $Alpha-STZ tokens
3. Value before fee: 1,000 × $1.15 = $1,150
4. After 0.1% fee: $1,148.85 -> 1,148 USDC (rounded down)
5. You receive: **$1,148 USDC**


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