Pricing and valuation
Understand reference exposure, implied value and the price available on a venue.
Reference price, implied value and market price
The reference price is the price of the underlying asset. The implied token value reflects the economic exposure represented by one token, including its multiplier. The secondary-market price comes from buyers, sellers and available liquidity.
These values serve different purposes. A token can trade at a premium or discount to its implied value.
| Value | Use |
|---|---|
| Reference price | A market reference for the underlying asset. |
| Multiplier | Exposure represented by one token. |
| Implied token value | A reference based on that economic exposure; not an executable quote. |
| Venue price | Available bids, asks or executions determined by market liquidity. |
How minting and redemption support price alignment
Approved market makers can use primary minting or redemption to respond to differences between secondary-market prices and implied token value.
Fees, liquidity, operating windows and access to backing markets determine whether a price difference can be traded. Arbitrage can support alignment, but does not guarantee convergence or profit.
| Secondary price | Possible action by an approved participant | Effect on token circulation |
|---|---|---|
| Above implied value | Mint through primary access, then sell tokens on the secondary market. | Newly issued tokens enter circulation. |
| Below implied value | Buy tokens on the secondary market, then redeem them for the corresponding cash value. | Redeemed tokens are burned and leave circulation. |
When the reference market is closed
A token venue may remain available when the reference market is closed. During those periods, liquidity and price discovery may weaken and the token’s premium or discount can widen.
When displaying prices, distinguish the last-known reference price from an executable token quote, and show when the reference was last updated.
How the multiplier affects implied value
The relationship can be illustrated as implied value per token ≈ reference price × exposure multiplier. The multiplier expresses the underlying exposure represented by one token, so token count alone is insufficient to value a holding.
This is an explanatory relationship, not a complete pricing specification. Before implementing valuation, obtain the current multiplier and applicable calculation, rounding, fee and update rules from us.